18. Forfeiture of unauthorised and excess collection of tax and penalty under section 31.—

(1) Where any person collects any sum by way of tax in contravention of the provisions of sub section (1) of section 31, the Prescribed Authority shall serve a notice in Form-16 upon such person requiring to appear on him the date and at the place specified in the notice and to show cause as to why the amount so collected unauthorizedly should not be forfeited to the Government account.

(2) If there is no response to the notice issued under sub-rule (1) within the date as specified in that notice or the explanation is not found satisfactory, the Prescribed Authority shall impose penalty as provided under sub-section (5) of section 31.

(3) When the amount of tax collected under section 31 is forfeited, the Prescribed Authority shall publish or cause to be published a notice in Form-17 on the notice board of the Prescribed Authority besides sending a copy of such notice to the person from whom the forfeiture is made.

(4) For the purpose of sub-section (10) of section 31, the application for making a claim of the forfeited amount shall be in Form-18.