Amendment status not verified — confirm the current text below against the official source.
(1) if the Commissioner, in the course of any proceeding under this Act, is satisfied that any dealer, (a) has, without reasonable cause, failed to furnish the return which he was required to furnish under section 7 or 10 or has, without reasonable cause, failed to furnish it within the specified time or, (b) has without reasonable cause, failed to comply with a notice under sub- section (2) of section 8, or (c) has, concealed the particulars of taxable goods purchased or deliberately furnished inaccurate particulars of such purchase; (d) has evaded in any way the liability to pay tax, he shall direct that such dealer shall pay by way of penalty in addition to the tax payable by him, a sum not exceeding one and half of that amount, (2) No order under sub-section (1) shall be made unless the dealer has been heard or has been given a reasonable opportunity of being heard. (3) Prohibition to collect excess tax. (a) No person shall collect from any other person any sum by way of or on account of tax under this Act in respect of any goods or which no tax is payable under this Act. (b) No person, who is not a registered dealer under this Act, and liable to pay tax thereunder in respect of any goods shall collect from any other person any sum by way of or on account of tax under this Act and no registered dealer shah collect any amount by way of or on account of tax in excess of the amount payable by him under this Act. (4) Forfeiture of excess tax etc: if any person (i) not being a registered dealer is liable to pay tax under this Act, collects any sum by way of or on account of tax or (being a registered dealer collected any sum by way of or on account of tax in excess of the tax payable by him, or (ii) otherwise collects tax in contravention of the provision of sub- section (3) (a) any sum so collected by that person by way of or on account of tax shall be forfeited to the State Government and when any order of forfeiture is made, the Commissioner shall publish or cause to be published a notice thereof for the information of the persons concerned giving such details and in such manner as may be prescribed. (b) Where the Commissioner has reason to believe that any person has willfully contravened the provisions of sub-section(3) the Commissioner may impose upon such person a penalty of an amount not exceeding two thousand rupees or double the sum collected by such person by way or on account of tax in contravention of the provisions of subsection (3), whichever is less. Provided that no penalty shall be imposed in respect of any such contravention which occurred on a date prior to the publication of this act in the official Gazette, (c) If the Commissioner in the course of any proceeding under this Act or otherwise has reason to believe that any person has become liable to forfeiture of any sum under sub-section (a), or both forfeiture of any sum under sub-section (a) and penalty under sub-section (b) he shall serve on such a person a notice in the prescribed form requiring him on a date and at a place specified in notice to attend and show cause why forfeiture or both forfeiture and penalty of any sum as provided in sub-section (a) and sub-section (b) should not be imposed on him. (d) The Commissioner shall thereupon hold an enquiry and shall make such order as he consider necessary. (e) No prosecution for an offence under this Act shall be instituted in respect of the same facts on which a penalty has been imposed under this section. (5) Payment of sum forfeited etc : (a) The amount of penalty (if any) levied under sub-section (4) and the sum (if any) forfeited to the State Government under sub-section (4) shall be paid by the dealer or the person liable therefor in Government treasury by such date as may be specified in a notice issued by the Commissioner for this purpose being a date not earlier than thirty days from the date of service of the notice. Provided that the Commissioner may, in respect of any particular dealer or person and for reasons to be recorded in writing extent the date of payment, or allow him to pay the penalty (if any) imposed under sub-section (4) or the sum forfeited by installments. (b) Any penalty imposed or sum forfeited under sub-section (4) which remains unpaid after the date specified in the notice for payment or after the extended date of payment and any installment not duly paid, shall he receivable as an arrear of land revenue. (c) Notwithstanding anything contained in this Act, or in any other law for the time being in force where any sum collected by a person by way of or an account or tax in contravention of sub- section (3) is forfeited to the State Government under Sub- section (4) or is recovered from him such payment or recovery shall discharge him, of the liability to refund the sum to the person from whom it was so collected. (d) A refund of any such sum or any pa1t there of may be claimed from the State Government by the person from whom it was realised by way of or on account of tax provided such tax was not passed on by him in any form or manner to some other person the claim for refund may be made by such other person only. (e) An application for such claim shah he made in writing in the prescribed form to the Commissioner within one year from the date of the order of forfeiture. (f) On receipt of an application under sub-section (e) the Commissioner shall hold such inquiry as he considers necessary and if the Commissioner is satisfied that the claim is valid and admissible and that the amount so claimed as refund was actually paid in Government treasury or recovered, and no drawback, set off, refund or remission in respect or that amount was granted he shall refund the sum of any part thereof, which is found due to the person concerned. Assessment not to bar prosecution or penalties.