(1)If any person-(a)Not being a dealer liable to pay tax under this Act, collects any sum by way of tax, or(b)Being a registered dealer, collects any amount by way of tax in excess of the tax payable by him shall be liable in addition to the tax for which he may be liable to a penalty of an amount equal to twice the sum so collected by way of tax.(2)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 a penalty, or forfeiture or both, under sub-section (1), he shall serve on such person a notice in the prescribed form requiring him to appear and show cause as to why a penalty or forfeiture or both of any sum as provided under sub-section (1) should not be imposed on him. The Commissioner shall thereupon hold an inquiry as the deems necessary and shall make such under as he deemsity.
