Collection of tax only by dealers liable to pay tax

(1) No dealer, who is not liable to pay tax under this Act shall collect in respect of any sale of goods by him any amount of tax under this Act and no dealer who is liable to pay tax under this Act, shall make any such collection except in accordance with the provisions of this Act or in excess of the amount of tax payable by him under this Act. (2) If any dealer contravenes the provisions of sub-section (1), he shall, notwithstanding anything contained elsewhere in this Act, deposit the amount collected by way of tax or the amount collected by way of tax in excess of the amount payable under this Act, as the case may be, into a Government Treasury or the State Bank of Sikkim or any other bank as may be notified by the Government within thirty days from the date of such collection and intimate the prescribed authority of such deposit along with a receipt from such Treasury or Bank showing payment of such amount. (3) The prescribed authority shall on application made by the buyer in respect of sales of goods referred to in sub-section (1) and on such terms and conditions as it may deem fit and proper, refund to such buyer the tax or the excess tax, as the case may be, collected from such buyers and deposited by the dealer in the manner referred to in sub-section (2): Provided that no application from any buyer shall be entertained unless the same is made within twelve months from the date on which the tax or excess tax, as the case may be, is paid and supported by relevant cash memo or bill issued by the dealer. (4) If a dealer is in default in depositing in accordance with the provisions of sub-section (2) the amount collected in contravention of the provisions of sub-section (1), the prescribed authority may, after giving such dealer a reasonable opportunity of being heard, by an order in writing direct that he shall pay by way of penalty a sum not less than the amount of tax so collected and not exceeding twice the amount of tax so collected by him in contravention of the provisions of sub-section (1). (5) The penalty imposed under sub-section (4) shall be paid by the dealer into a Government Treasury or the State Bank of Sikkim or any other bank as may be notified by the Government by such date as may be specified by the prescribed authority in the notice issued for the purpose and such date shall not be less than sixty days from the date of serving of such notice. (6) Any penalty that remains unpaid after the date specified in the notice referred to in sub-section (5) shall be recoverable in accordance with the provisions of section 49.