Sale of Goods allowed during Lockdown?

There is a lockdown imposed at various locations throughout the country. The lock down is imposed either by the state Government or by the Central Government in view of the power given u/s 2 & 2A of The Epidemic Act.

The question arises, whether there will be penalty or fine if the person effects any sale during the period of the lock down?

The lockdown is imposed under the Epidemic Disease Act-1897. This Act empowers the Government with Power to take special measures and prescribe regulations as to dangerous epidemic diseases. Absolutely, this includes the power to impose the lockdown.

It may be noted that the Epidemic Diseases Act, 1897 is a very old Act and consists of only 11 sections. The word “Lockdown” is absolutely not defined in the Epidemic Diseases Act, 1897.
The question arises, if the Government has ordered the lockdown then whether still the businessmen can sale the goods? Whether the billing can still be done by the such businessmen? Whether it will attract any legal consequences?

It may be noted that there is no violation under the Income Tax Act or GST Act if the businessmen sale the goods to anyone during lockdown also. The only violation would be there under the Epidemic Act. It means there is no prohibition for the businessmen as far as penal consequences under the I.T. Act & GST Act is concerned. It means that even if the businessmen do billing during lock down period by selling the goods, no direct consequences would flow from fiscal laws.

As far as penal consequences under the Epidemic Act is concerned, it may be noted that the penalty is concerned, the penalty is prescribed u/s 3 of the Epidemic Act which reads as under:

Penalty. – [(1)] Any person disobeying any regulation or order made under this Act shall be deemed to have committed an offence punishable under section 188 of the Indian Penal Code.

[(2) Whoever, –

(i) commits or abets the commission of an act of violence against a healthcare service personnel; or

(ii) abets or causes damage or loss to any property,

shall be punished with imprisonment for a term which shall not be less than three months, but which may extend to five years, and with fine, which shall not be less than fifty thousand rupees, but which may extend to two lakh rupees.
The Epidemic Ac refers to section 188 OF the IPC for imposition of penalty which reads as under:

Section 188 in The Indian Penal Code:-

Disobedience to order duly promulgated by public servant.—Whoever, knowing that, by an order promulgated by a public serv­ant lawfully empowered to promulgate such order, he is directed to abstain from a certain act, or to take certain order with certain property in his possession or under his management, disobeys such direction, shall, if such disobedience causes or tends to cause obstruction, annoyance or injury, or risk of obstruction, annoyance or injury, to any person lawfully employed, be punished with simple impris­onment for a term which may extend to one month or with fine which may extend to two hundred rupees, or with both; and if such disobedience causes or trends to cause danger to human life, health or safety, or causes or tends to cause a riot or affray, shall be punished with imprisonment of either description for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both. Explanation.—It is not necessary that the offender should intend to produce harm, or contemplate his disobedience as likely to produce harm. It is sufficient that he knows of the order which he disobeys, and that his disobedience produces, or is likely to produce, harm. 

Illustration :-  An order is promulgated by a public servant lawfully empowered to promulgate such order, directing that a religious procession shall not pass down a certain street. A knowingly disobeys the order, and thereby causes danger of riot. A has committed the offence defined in this section.

It may be noted that section 188 provides an exception to penal consequences by mentioning that penalty shall be there if such disobedience causes or trends to cause danger to human life, health or safety, or causes or tends to cause a riot or affray.

Another question emerges whether Income Tax Officers / GST officers are duty bound to report this transactions?

In my opinion, the CBDT has signed pact with the CBIC, SEBI, etc and there is no pact as such with the home ministry under whom the IPC Act is regulated and as such the sharing of information is not necessary. This is my personal opinion on the basis of data and information collected by me from various sources. Readers may please share their views/opinion on the same.

Thanks & Regards 

CA Shivam Gupta 

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