46. Imposition of penalty for contra vailing Certain provisions. - (1) If any person collects any amount by way of tax in contravention of the provisions of section 56, he shall be liable to pay, in addition to any tax for which he may be liable,
(i)a penalty equal to such amount as shall not be less than the amount so collected or more than double such amount, in a case where the Commissioner has reason to believe that such person has willfully contravened the provision of section 56, and(ii)a penalty equal to the amount so collected, in any other case.(2)If any person being a dealer liable to pay tax under this Act or being a dealer who was required to do so by the Commissioner by notice served on him, fails to maintain accounts in the manner specified in sub-section (1) of section 58, or fails when directed to do so under that section to keep any accounts or record in accordance with the direction, he shall be liable to pay in addition to any tax for which he may be liable, a penalty of the amount not exceeding two thousand rupees or double the amount of tax which would have been, payable had there been no such contravention, whichever is less.(3)If the Commissioner, in the course of any proceedings, under this Act or otherwise, has reason to believe that any person has become liable to a penalty under sub-section (1) or (2), he shall serve on such person a notice requiring, him on a date and at a place specified in the notice to attend and to show cause why a penalty as provided in sub-section (1) or (2) should not be imposed on him.(4)The Commissioner shah thereupon hold an inquiry, and shall mate such order as be thinks fit.
