(1) Subject to such conditions as he may impose, the Administrator may, if he considers it necessary so to do in the public interest, by notification in the Official Gazette, exempt any specified class of dealers or any specified class of sales from payment of the whole or any part of any tax payable under this Regulation.
(2) Where any specified class of dealers or class of sales is exempt from payment of tax under sub-section (1) and if there be a breach of any of the conditions subject to which such exemption was granted, the seller, in case he is responsible for such breach, shall be liable to Power of Administrator to prescribe points at which goods may be taxed.
Burden of proof.
Tax-free goods.
Exemption.
9 of 1910.
74 of 1988.
SEC. l j THE GAZETTE OF INDIA EXTRAORDINARY 127 pay tax on such sales as if no such exemption had been granted notwithstanding that he may not be liable to pay tax under section 4. But if the purchaser is responsible for the breach, the Commissioner or any person appointed under sub-section (1) of section 3 to assist the Commissioner shall, after giving the purchaser a reasonable opportunity of being heard, impose upon him a penalty not exceeriing one and a half times the amount of tax which would result if such goods were subject to sales-tax ai. the rate leviable at the time of their purchase,
(3) I£ the Commissioner or any person appointed under sub-section (I) of section 3 to assist the Commissioner, has reason to believe that the seller is liable to pay tax under sub-section (2), the Commissioner or such person shall, after giving the dealer a reasonable opportunity of being heard, assess the amount of tax so due.