Section 5B(2) in Andhra Pradesh General Sales Tax Act, 1957
(2)If any dealer,(i)not having his manufacturing unit within the State purchases any goods by furnishing a declaration under the proviso to sub section (1); or(ii)having his manufacturing unit within the State and having purchased goods by furnishing a declaration under the proviso to sub section (1) sells such goods contrary to such declaration, the assessing authority, may after giving such dealer a reasonable opportunity of being heard, by order in writing, impose upon him by way of penalty a sum which shall not be less than three times but which may extend to five times the amount of tax leviable on the sale of such goods so purchased.
