Penalty for concealment of sales and furnishing incorrect particulars of sales and purchases

(1) Where, (a) a dealer has concealed any sales or any particulars thereof, or (b) a dealer, being a registered dealer or a dealer required by the prescribed authority to furnish return under section 30, has furnished incorrect statement of his turnover of sales or purchases or incorrect particulars of such sales or purchases with an intent to reduce the amount of tax payable by him, the prescribed authority may, after giving such dealer a reasonable opportunity of being heard, by an order in writing, direct that the dealer shall, in addition to any tax levied or penalty imposed under this Act, pay, by way of penalty, a sum not less than one and half times but not exceeding thrice the amount of tax which would have been avoided by him if such concealed sales or purchases or particulars thereof or incorrect statement of his turnover of sales or purchases or incorrect particulars of such sales or purchases were not detected and taken into account of, if turnover of sales or particulars of sales furnished in returns or shown in his book of account were accepted as correct, as the case may be, in making an assessment or passing any order upon appeal, revision or review under the Act. (2) Any penalty imposed under sub-section (1) shall be paid by the dealer into a Government Treasury or the State Bank of Sikkim or any other bank as notified by the Government by such date as may be specified by the prescribed authority in a notice issued for the purpose, and the date to be so specified shall not be less than fifteen days from the date of such notice: Provided that the prescribed authority may, for reasons to be recorded in writing extend the date of such payment or allow the dealer to pay the penalty imposed in such number of instalment as it may determine. (3) Any amount of penalty that remains unpaid after the date specified in the notice referred to in sub-section (2) or where such date has been extended under the Proviso to that sub-section, after the expiry of extended time, shall be recoverable in accordance with the provisions of section 45.