Collection of tax by a registered proprietor or stockist and forfeiture of illegal or excess collection of taxes

Collection of tax by a registered proprietor or stockist and forfeiture of illegal or excess collection of taxes.-

1. (1) A proprietor or a stockist, who is not registered under this Act, shall not collect any amount by way of tax or purporting to be by way of tax under this Act, nor shall a registered proprietor or a registered stockist collect any amount by way of tax or purporting to be by way of tax at a rate exceeding the rate specified under this Act at which he is liable to pay tax.
2. (2) If any proprietor or stockist contravenes the provisions of sub-section (1), the Luxury Tax Officer, after giving such proprietor or stockist a reasonable opportunity of being heard,-
   • (a) shall, by order in writing, forfeit in favour of the State Government the amount unauthorisedly collected or collected in excess of the prescribed rate ; and
   • (b) may, in addition, by order in writing, impose upon him by way of penalty a sum not exceeding one and a half times the amount so collected.