Section 40(2) in Tamil Nadu Value Added Tax Act, 2006
(2)If any person or registered dealer collects any amount by way of tax or purporting to be by way of tax, in contravention of the provisions of sub-section (1), whether or not any tax is due from such person or dealer under this Act in respect of the transaction in which he collects such amount, the assessing authority may, after giving such person or dealer a reasonable opportunity of being heard, by order, in writing, impose upon him by way of penalty a sum, which shall be, -(i)where the excess amount has been collected in the bona fide belief that it had to be collected, one hundred per cent of the amount collected;(ii)where the excess amount has been collected wilfully and knowing that it was not due to be collected, one hundred and fifty per cent of the amount collected:Provided that no proceedings under this sub-section shall be commenced after a period of [six years from the date of assessment:] [These words were substituted for the words 'five years from the date of order of the assessment' by Section 8 of the Fifth Amendment Act 23 of 2012, effective from a date to be notified and notifie by G.O.No.82 as effective from 19th June 2012]:Provided further that no prosecution for an offence under sub-section (2) of section 71 shall be instituted in respect of the same facts on which a penalty has been imposed under this sub-section.
