15. Compounding of Tax Liability in certain cases

(1) Notwithstanding anything to the contrary contained in the Act, the State Government may, by notification and subject to such conditions and restrictions as may be prescribed, permit any class of registered dealers, whose gross turnover does not exceed the limit specified in the notification to pay, in lieu of the tax payable by him, an amount calculated at such rate, not exceeding four percent of his taxable turnover, as may be specified in the notification:

Provided that no such permission shall be granted to a manufacturer or a person who imports any goods from any place outside the State of Bihar for the purpose of his business:

Provided further that the amount so specified shall be in addition to any tax that may be payable by the dealer under section 4.

(2) The dealers to whom the provisions of sub-section (1) apply shall —

(a) not charge any tax on the sale of goods specified in Schedule I;

(b) not charge tax in excess of the rate specified in the notification issued under subsection (1); and

(c) not be entitled to issue tax invoices in respect of sales made by them.

(3) If the Assessing Authority has reasons to believe that the dealer was not eligible to pay tax at a rate specified under sub-section (1), the Assessing Authority shall, without prejudice to any action which is or may be taken under section 81, impose a penalty equivalent to three times of the amount of tax arrived at after applying the rate, specified under section 14, to the gross turnover of the dealer after deducting the value of sales under section 6:

Provided that no order under this sub-section shall be passed without giving the dealer a reasonable opportunity of being heard.

(4) Notwithstanding anything to the contrary contained in the Act, the State Government may, by notification and subject to such conditions and restrictions as may be specified in the notification, permit any class of registered dealers to pay, in respect of sales of any goods or class or description of goods, a fixed amount in lieu of the tax payable by the dealer under the Act.

(5) (a) Notwithstanding anything to the contrary contained in the Act, the State Government may, by notification and subject to such conditions and restrictions as may be specified in the notification, permit any class of registered dealers, being an importer or a manufacturer, to pay, in lieu of the tax payable by him, tax at the rate specified in section 14 on the maximum retail price of such goods in the manner prescribed.

(b) Where a dealer has purchased any goods -

(i) from an importer or a manufacturer upon payment of tax on the maximum retail price of such goods; or

(ii) from another registered dealer where tax on the maximum retail price of such goods was paid in Bihar on an earlier occasion, subsequent sales of the same goods in the State of Bihar shall not be levied to tax, if the dealer making the subsequent sale produces before the prescribed authority the original copy of the cash memo, or invoice or bill issued to him and files a true and complete declaration in the form and in the manner prescribed.