(1) Where—

(a) dealer or casual dealer has concealed any sales or purchases or contractual transfer price, as the case may be, or any particulars thereof, or

(b) a dealer, required to furnish return under sub-section (1) of section 32 has furnished incorrect statement of his turnover of sales or purchases or of contractual transfer price or incorrect particulars of such sales or purchases or contractual transfer price in the return furnished by him under sub-section (2) of that section or otherwise, or

(c) any registered dealer has claimed excess amount of input tax credit or input tax rebate but has not reversed the same to the extent of his disentitlement ,

with intent to reduce the amount of net tax or any other tax payable by him, the Commissioner may, by way of a separate proceeding independent of any assessment, appeal, revision or review and after giving in the prescribed manner, such dealer a reasonable opportunity of being heard, by an order in writing direct that he shall, in addition to any tax levied or penalty imposed under this Act, pay, by way of penalty, a sum not exceeding twice the amount of tax which would have been avoided by him if such concealed sales or purchases or contractual transfer price or particulars thereof or incorrect statement of turnover of sales or purchases or contractual transfer price or incorrect particulars of such sales or purchases or contractual transfer price or claim of excess input tax credit or input tax rebate were not detected and taken into account or if turnover of sales or purchases or contractual transfer price or particulars of sales or purchases or contractual transfer price or input tax credit or input tax rebate furnished in returns or shown in his books of account were accepted as correct, as the case may be, in making an assessment or passing any order upon appeal, revision or review under the Act.

Explanation. - In this sub-section, the expression "tax levied" shall include the amount of tax determined afresh by an order passed upon appeal, revision, review, or by any order of assessment consequent upon such appeal, revision, review, under this Act.

(2) Any penalty imposed under sub-section (1) shall be paid by the dealer by such date as may be specified by the Commissioner in a notice issued for the purpose, and the date to be so specified shall not be less than fifteen days from the date of issue of such notice:

Provided that the Commissioner may, for reasons to be recorded in writing, extend the date of such payment or allow the dealer to pay the penalty imposed in such number of instalments as the Commissioner may determine.