Section 46 in The Police Enhanced Penalties Ordinance, 2005
46. Collection of tax by dealer.
(1)If any person -(a)not being a dealer liable to pay tax under the Act, collects any sum by way of tax; or(b)being a registered dealer, collects any amount by way of tax in excess of tax payable by him,-he shall in respect of clause (a) above be liable in addition to tax for which he may be liable, to a penalty of an amount equal to twice the sum so collected by way of tax and in respect of clause (b) be liable to deposit the excess tax so collected in the treasury within the tax period of such collection(2)If the Assessing Authority in the course of any proceedings under the Act or otherwise has reasons to believe that any person has become liable to a tax or penalty, 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 of any sum as provided under sub- section (1) should not be imposed on him.(3)The Assessing Authority shall thereupon hold such an inquiry as may be necessary and shall make such order as he deems fit.
