Penalty for falsely claiming to be a member, etc.
24. Any person who,—
(i) not being a member of the Institute—
(a) represents that he is a member of the Institute; or
(b) uses the designation cost accountant; or
(ii) being a member of the Institute, but not having a certificate of practice, represents that he is
in practice or practises as a cost accountant,
shall be punishable on first conviction with fine which may extend to one thousand rupees, and on
any subsequent conviction with imprisonment which may extend to six months, or with fine which
may extend to five thousand rupees, or with both.
Penalty for using name of the Council, awarding degrees of cost accountancy, etc.
25. (1) Save as otherwise provided in this Act, no person shall,—
(i) use a name or a common seal which is identical with the name or the common seal of the
Institute or so nearly resembles it as to deceive or as is likely to deceive the public;
(ii) award any degree, diploma or certificate or bestow any designation which indicates or
purports to indicate the position or attainment of any qualification or competence in cost
accountancy similar to that of a member of the Institute; or
(iii) seek to regulate in any manner whatsoever the profession of cost and works accountants.
(2) Any person contravening the provisions of sub-section (1) shall, without prejudice to any other
proceedings which may be taken against him, be punishable on first conviction with fine which
may extend to one thousand rupees, and on any subsequent conviction with imprisonment which
may extend to six months, or with fine which may extend to five thousand rupees, or with both.
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(3) 1
[***]
(4) If the Central Government is satisfied that any diploma or certificate or any designation
granted or conferred by any person other than the Institute, which purports to be a qualification in
cost accountancy but which, in the opinion of the Central Government, falls short of the standard
of qualifications prescribed for cost accountants and does not in fact indicate or purport to
indicate the position or attainment of any qualification or competence in cost accountancy similar
to that of a member of the Institute, it may, by notification in the Official Gazette and subject to
such conditions as it may think fit to impose, declare that this section shall not apply to such
diploma or certificate or designation.
Companies not to engage in cost accountancy.
26. (1) No company, whether incorporated in India or elsewhere, shall practise as cost
accountants.
(2) Any contravention of the provisions of sub-section (1) shall be punishable on first conviction
with fine which may extend to one thousand rupees, and on any subsequent conviction to five
thousand rupees.
Unqualified persons not to sign documents.
27. (1) No person other than a member of the Institute shall sign any document on behalf of a
cost accountant in practice or a firm of such cost accountants in his or its professional capacity.
2
[(2) Any person who contravenes the provisions of sub-section (1) shall, without prejudice to any
other proceedings which may be taken against him, be punishable on first conviction with a fine
not less than five thousand rupees but which may extend to one lakh rupees, and in the event of
a second or subsequent conviction with imprisonment for a term which may extend to one year or
with a fine not less than ten thousand rupees but which may extend to two lakh rupees or with
both.]
Offences by companies.
28. (1) If the person committing an offence under this Act is a company, the company as well as
every person in charge of, and responsible to, the company for the conduct of its business at the
time of the commission of the offence shall be deemed to be guilty of the offence and shall be
liable to be proceeded against and punished accordingly :
Provided that nothing contained in this sub-section shall render any such person liable to any
punishment if he proves that the offence was committed without his knowledge or that he
exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has
been committed by a company and it is proved that the offence has been committed with the
consent or connivance of, or that the commission of the offence is attributable to any neglect on
the part of, any director, manager, secretary or other officer of the company, such director,
manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be
liable to be proceeded against and punished accordingly.
____________________
1Omitted by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f. 8-8-2006. Prior to its omission, sub-section
(3) read as under:
“(3) Nothing contained in this section shall apply to any University established by law or to any body affiliated to the
Institute.”
2Substituted, by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f. 8-8-2006. Prior to its substitution, subsection (2) read as under :
“(2) Any person contravening the provision of sub-section (1) shall, without prejudice to any other proceedings
which may be taken against him, be punishable with fine which may extend on first conviction to one thousand
rupees, and on any subsequent conviction with imprisonment which may extend to six months, or with fine which
may extend to five thousand rupees, or with both.”
23
Explanation: For the purposes of this section,—
(a) “company”, with respect to an offence under section 24, section 25 or section 27, means
any body corporate and includes a firm or other association of individuals; and with respect
to an offence under section 26 means a body corporate; and
(b) “director”, in relation to a firm, means a partner in the firm.
Sanction to prosecute.
29. No person shall be prosecuted under this Act except on a complaint made by or under the
order of the Council or of the Central Government.