The EC had earlier this month issued a show cause notice to him for his remarks made an election meeting in Tezpur.
In his reply, Sarmah had said the remarks do not violate the provisions of the Model Code of Conduct.
Noting that his remarks were "communal and inflammatory" in nature, the EC conveyed its "displeasure" and said it showed his "utter disrespect" for the provisions of the Model Code.
On March 29, the minister had said "blood of Muslims" flows through pipes in Gujarat.
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