Penalty for non-submission of return and evasion of taxes

(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 : Any assessment made under this Act, shall be without prejudice to any prosecution or penalty instituted or imposed under the provisions of this Act.