(1) If the prescribed authority is satisfied that any registered dealer--
(a) has concealed any sales or purchases or any particulars thereof, with a view to reduce the amount of tax payable by him under this Act; or
(b) has furnished incorrect statement of his turnover or incorrect particulars of his sales or purchases in the return furnished under sub-section (1) of section 24 or quarterly statement under sub-section (2) of section 24 or quarterly abstract statement under sub-section (3) of section 24; or
(c) has claimed input tax credit in excess of the amount of input tax credit to which he is entitled under this Act,
the prescribed authority shall, after giving such a dealer an opportunity of being heard in the prescribed manner, by an order in writing, direct that he shall, besides the amount of interest payable under sub-section (10) of section 24 and in addition to any tax which may be determined to be payable by him under the Act, pay by way of penalty, a sum equal to three times the amount of tax on the concealed turnover or on concealed or incorrect particulars or excess input tax credit claimed.
(2) The penalty under sub-section (1) may be imposed before completion of assessment, and for determining the amount of penalty, the prescribed authority may quantify the amount of tax provisionally in the prescribed manner.
(3) Any penalty imposed under sub-section (1) shall be without prejudice to any action, which is or may be taken under section 81.