Collection of tax by dealers

(1) No person who is not a registered dealer shall collect any amount by way of tax under this Act; nor shall a registered dealer make any such collection except in accordance with such conditions and restrictions, if any, as may be prescribed: Provided that nothing contained in this sub-section shall apply to the Central Government, a State Government or a local authority. (2) If any dealer or person who is not liable to tax under this Act collects any amount purporting to be by way of tax, such dealer or person shall, unless it is established to the satisfaction of the assessing authority that the amount so collected has been refunded to the person who had originally paid the amount, pay over to the Government within such time and in such manner as may be prescribed all amounts so collected. (3) If any dealer or person collects tax on transactions not liable to tax under this Act or in excess of the tax leviable under this Act, such dealer or person shall, unless it is established to the satisfaction of the assessing authority that the tax so collected has been refunded to the person who had originally paid the tax, pay over to the Government, in addition to the tax payable, the amount so collected, within such time and in such manner as may be prescribed. (4) A local authority which collects any amount by way of tax under this Act shall pay over to the Government the amount so collected, and if any such amount is not so paid the Collector of the district concerned shall, on requisition by the assessing authority, make an order directing the person having the custody of the funds of the local authority to pay it in priority to any other charge against such fund except charges for the service of authorised loans; and such person shall be bound to comply with such order.