(2)The proceeding under sub-section (1) shall be initiated by the Commissioner or the Appellate [Authority] [Substituted by M.P. Act No. 12 of 2006.] or Appellate Board, as the case may be. by issue of a notice in the prescribed form for giving the dealer an opportunity of being heard. On hearing the dealer, the Commissioner or the Appellate [Authority] [Substituted by M.P. Act No. 12 of 2006.] or the Appellate Board as the case may be, shall pass an order not later than one calendar year from the date of initiation of such proceeding, directing the dealer that he shall in addition to the tax payable by him, pay by way of penalty a sum which [shall not be less than three times hut shall not exceed 3.5 times of the amount of tax evaded.] [Substituted by M.P. Act No. 11 of 2003.]
