18. Penalty for certain contravention.—

(1) Where a taxable person who–

 (a) owns, operates ¹[or is in]₁ control of any machine or process for the purpose of manufacture or production of the specified goods without declaring to the proper officer under this Act; or

(b) fails to pay the cess levied under section 4 beyond a period of three months from the date on which such payment becomes due under section 10; or

(c) fails to furnish returns as required under section 10 or falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information or declaration or return with an intention to evade payment of cess due under the said section; or

(d) fraudulently obtains refund of cess; or

(e) obstructs or prevents any officer in discharge of his duties under this Act; or

(f) is liable to be registered under this Act but fails to obtain registration; or

(g) fails to furnish information or documents called for by an officer in accordance with the provisions of this Act or the rules made thereunder, or furnishes false information or documents during any proceedings under this Act; or

(h) tampers with, or destroys any material evidence or document; or

 (i) disposes of or tampers with any goods that have been seized under this Act, the proper officer may, after making such inquiry as he deems fit, impose on such taxable person in addition to the cess leviable, a penalty of ten thousand rupees or an amount equivalent to the cess payable or cess sought to be evaded, or the refund claimed fraudulently, whichever is higher.

(2) Any person who aids or abets any of the contraventions specified in clauses (a) to (i) of sub-section (1) shall be liable to a penalty which may extend to one hundred thousand rupees.

(3) Any order imposing any such penalty shall be passed by the proper officer only after giving the taxable person a reasonable opportunity of being heard.