Section 10A of Central Sales Tax Act 1956 has provision to avoid Prosecution by imposing Penalty against violation of provisions under Central Sales Tax Act. As per the Act the person who has violated the provision of the Act can pay penalty to avoid prosecution. Provisions in the act related to Imposition of Penalty in lieu of Prosecution for violation is as follows
Section 10A Imposition of penalty in lieu of prosecution
If any person?
10A (1) If any person purchasing goods is guilty of an offence
under clause (b) or clause (c) or clause (d) of section 10, the
authority who granted to him or, as the case may be, is
competent to grant to him a certificate of registration under
this Act may, after giving him a reasonable opportunity of being
heard, by order in writing, impose upon him by way of penalty a
sum not exceeding one-and-a-half times the tax which would have
been levied under sub-section (2) of section 8 in respect of the
sale to him of the goods, if the sale had been a sale falling
within that sub-section.:
PROVIDED that no prosecution for an offence under section 10 shall be instituted in respect of the same facts on which a penalty has been imposed under this section.
(2) The penalty imposed upon any dealer under sub-section (1)
shall be collected by the Government of India in the manner
provided in sub-section (2) of section 9-
(a) in the case of an offence falling under clause (b) or clause
(d) of section 10, in the State in which the person purchasing
the goods obtained the form prescribed for the purposes of
clause (a) of sub-section (4) of section 8 in connection with
the purchase of such goods ;
(b) in the case of an offence falling under clause (c) of section 10, in the State in which the person purchasing the goods should have registered himself if the offence had not been committed.
To avoid prosecution against violation of the Act it is better to pay penalty and settle the case before starting prosecution proceedings.