51.
Penalty for failure to pay tax when due
(1)
Where a dealer who fails to pay tax due on the basis of the return submitted by
him by the last day of the month in which it is due, he shall be liable to pay
tax and a penalty of ten percent of the amount of tax due:
Provided
that before levying such penalty the authority prescribed shall give the dealer
a reasonable opportunity of being heard.
(2)
If a dealer pays the tax, penalty and interest under sub-section (1) and
subsequently it is found that the tax is not due, then such tax, penalty and
interest shall be refunded to that dealer.