44. Collection of tax by dealer.-

(1) If any person;

(a) not being a dealer liable to pay tax under this Act collects any sum by way of tax; or

(b) being a registered dealer, collects any amount by way of tax in excess of the tax payable by him shall be liable, in addition to the tax for which he may be liable, to a penalty of an amount equal to twice the sum so collected by way of tax.

(2) If the Commissioner in the course of any proceeding under this Act, or otherwise has reason to believe that any person who has become liable to a penalty, or forfeiture, or both, under sub-section (1), he shall serve on such person a notice in the prescribed form requiring him to appear and to show cause as to why a penalty or forfeiture or both of any sum as provided under sub-section (1) should not be imposed on him.

(3) The Commissioner shall thereupon hold an enquiry as he deems necessary and shall make such order as he deems fit.