Section 55(4) in Telangana Value Added Tax Act, 2005
(4)[ (a) Any dealer, who purchases any goods by furnishing a declaration and uses such goods contrary to such declaration, shall be liable to pay a penalty of 200% of the tax leviable in the absence of such declaration on the value of such goods so purchased;(b)any dealer, who claims that any sale of any goods is liable to tax at a reduced rate is found to be in possession of any false or fabricated declaration and pays tax at a reduced rate under the Act, shall be liable to pay a penalty of 200% of the tax leviable in the absence of such declaration on the value of the goods, so sold:Provided that before levying penalty under this subsection, the assessing authority shall give the dealer a reasonable opportunity of being heard.] [Added by Act No.28 of 2008.]
