21. Collection of tax by registered importer

(1) No person, who is not a registered importer, shall collect any amount by way of tax under this Act on entry of any goods into a local area and no registered importer shall make any collection except in accordance with this Act and the rules made thereunder.

(2) Where any amount is collected by way of tax or purporting to be by way of tax by any person in contravention of sub-section (1), such person shall pay the amount so collected to the assessing authority as if the said amount has been collected as tax payable under this Act and if the said person fails to make the payment, he shall, in addition to making the payment of the said amount, be liable to pay, by order of the assessing authority passed after giving him an opportunity of being heard, a penalty which may extend equal to the said amount

(3) Any amount collected by any person considering the same to be tax payable under this Act, to the extent it is not due as tax, be forfeited to the State Government and, if not paid, be recovered from him and such payment or recovery shall discharge him of the liability to refund the amount to the person from whom it was collected.

(4) Where any amount is paid by or recovered from any person under sub-section (2) or sub-section (3), refund of such amount or any part thereof can be claimed from the State Government by the person from whom it was realised by way of tax provided an application in writing in the prescribed form is made within one year from the date of realization of tax from him, to the Commissioner or to such other officer not below the rank of Deputy Excise and Taxation Commissioner, as is authorized by the Commissioner either generally or subject to such restrictions and conditions, as he may impose, in this behalf. On receipt of any such application, the Commissioner or other officer, as the case may be, shall hold such inquiry as he deems fit and if he is satisfied that the claimant has not further passed on the burden on tax to any other person whether directly or indirectly, the claim is valid and admissible, and the amount claimed as refund is actually paid or recovered, he shall refund the amount or any part thereof, which is found due to the person concerned.