(1) Where an awarder of a works contract, fails to deduct the amount in lieu of tax from the bill of a contractor as prescribed, or after having deducted such amount from such bill does not deposit the same in the prescribed manner and time, he shall be liable to pay tax deducted by him and a penalty for each violation, [which may extend upto rupees one thousand in the case of non–deduction, and a penalty at the rate of two percent per month on the amount so deducted but not deposited for the period during which such default continues.]
[(2) Any officer not below the rank of an Assistant Commercial Taxes Officer as may be authorized by the Commissioner shall be empowered to recover tax and impose penalty under sub-section (1).]