22B. Penalty for issue of tax invoice without sale or without delivery of goods

(1) where any registered dealer has issued tax invoice to another registered dealer in any period ---

(a) Without entering into a valid transaction of sale of goods or

(b) Without effecting any consequent delivery of goods ,

The Commissioner may, by way of a separate proceeding independent of any scrutiny, verification, audit, assessment, appeal, revision or review for such period and after giving in the prescribed manner, a reasonable opportunity of being heard to such dealer, impose, in addition to any tax levied or leviable or penalty imposed or imposable under this Act for such period, by an order in writing, a penalty of a sum calculated at such percentage, not less than one hundred and twenty five per centum and not exceeding two hundred fifty per centum, as specified in sub-section (2), of the amount of tax involved in the tax invoices issued by him in the situations referred to in clause (a) and clause (b) :

Provided that no penalty under this section shall be imposed if action has been taken against the dealer under sub-section (3) of section 22 for the same facts and vice versa.

(2) For the purposes of imposition of penalty under sub-section (1) the percentage shall be as follows :-

(a) at the rate of one hundred and twenty five per centum where the dealer admits in writing the facts of such issue of tax invoice and pays within one month of inspection or enquiry leading to detection of such issue of tax invoice or within one month of initiation of proceedings for the purpose of imposition of penalty under sub-section (1), or within one month of initiation of the proceeding for assessment or appeal or revision or review for such period, as the case may be, whichever is earlier, an amounts towards penalty equal to one hundred and twenty five per centum of the full amount of tax shown in such tax invoice issued by him in the situation referred to in clause

(a) and clause (b) of sub-section (1).

(b) at the rate of two hundred fifty per centum in all other cases ;

provided that a dealer may make application within the period mentioned in clause (a) to the Commissioner, with proof of payment of thirty per centum of the penalty imposable under clause (a), for granting of installment for payment of the balance amount towards penalty as so imposable, and upon such application, the Commissioner may allow such dealer to make payment in monthly installments for not more than ten months the balance amount towards penalty so imposable, and upon payment of such full amount, penalty under the sub-section (1) shall be imposed at the percentage specified in clause (a).

Provided further that if the dealer fails to pay the full amount of penalty imposable as per the installment granted, if any, under the first proviso, then the penalty under sub-section (1) shall be imposed at the rate of two hundred fifty per centum of the amount of tax shown in such tax invoices issued by him in the situations referred to in clause (a) and clause (b) of sub-section (1) :

Provided also that if it is found that the amount of tax involved in such issue of invoice by a dealer is in excess of the amount admitted in writing by the dealer under clause (a), then penalty under sub-section (1) shall be imposed at the rate of two hundred fifty per centum on that part of the amount of tax, involved in such tax invoices issued by him in the situations referred to in clause (a) and clause (b) of sub-section (1), which has not been admitted by the dealer in writing.