18. Prohibition against collection of tax in certain cases.
(1)No person shall collect any sum by way of tax in respect of any receipts on which no tax is payable under this Act.(2)No person, who is not a registered dealer and liable to pay tax in respect of any receipts, shall collect on them any sum by way of tax from any other person and no registered dealer shall collect any amount by way of tax in excess of the amount of tax payable by him.(3)I any person, not being a dealer liable to pay tax, collects any sum by way of tax, or being a registered dealer collects any amount by ways of tax in excess of the tax payable by him or otherwise collects tax in contravention of the provisions of sub-section (1) and (2), he shall be liable to pay, in addition to any tax for which he may be liable, a penalty of an amount not exceeding five hundred rupees, or double the amount so collected, whichever is greater.(4)If the Commissioner or any person appointed to assist him under subsection (1) of section 3, in the course of any proceedings under this Act or otherwise, has reasons to believe that any person has become liable to pay penalty under subsection (3), he shall serve on such person a notice in the prescribed form requiring him to show cause why a penalty as provided in sub-section (3) should not be imposed on him.(5)The Commissioner or any person appointed to assist him under sub-section (1) of section 3 shall thereupon hold an enquiry and shall make such order as he thinks fit.
