- Where any dealer uses any declaration form against the provisions of the Act or the rules made thereunder, or after having purchased any goods, other than the goods purchased under Section 10, in respect of which he has made declaration under the provisions of this Act or the rules made thereunder, fails without reasonable cause to use or dispose of the goods in accordance with the declared purpose, the assessing authority may direct that such person shall pay by way of penalty in addition to the tax payable under sub-section (2) of Section 11, a sum equal to double the amount of tax to the extent to which it was not required to be paid by such dealer on the strength of the declaration forms furnished by him.
