Report No. 61
6.17. Offence of cheating constituted by over-charging.-
As to criminal liability for over-charging tax, the offence most probably committed by a dealer in the circumstances mentioned above is that of cheating. In so far as is material for the present purpose, the relevant section in the Indian Penal Code1, (dealing with cheating) punishes a person who, by "deceiving" another person, induces that person to do a certain thing-in the present case, the payment of money not legally due. The crucial word is the word "deceiving". The starting point in the search for guilt in a case alleged to be one of cheating, is a consideration of the question whether there was a "deception". The Indian Penal Code does not define the expression "deceiving". Roughly speaking, there is deception when there is untrue representation (made knowingly), which induces belief in the mind of the person to whom the representation is made, and which is intended to induce such belief.
1. Section 415, read with section 420, IPC.