Failure to maintain correct accounts and to furnish correct returns

If a dealer has maintained false or incorrect accounts or documents with a view to suppressing his turnover, or has concealed any particulars of his receipts or has furnished to or produced before any authority under this Act or the rules made there under any account, return, document of information which is false or incorrect in any material particulars, the Commissioner or any person appointed to assist him under sub-section

1. (1) of section 3 may, after affording such dealer a reasonable opportunity of being heard, direct him to pay by way of penalty, in addition to the tax to which he is assessed or is liable to be assessed, a sum not less than twice and not more than three times the amount of tax which would have been avoided on the basis of aforesaid circumstances and where no tax is payable, a sum not less than on hundred rupees and not exceeding one thousand rupees.