(1) Every person intending to undertake a foreign travel and holding foreign exchange in relation to which the tax payable under this Chapter has not been paid shall, in addition to his liability to pay the tax, be liable to pay a penalty not exceeding twice the amount of the tax he would have paid under the provisions of this Chapter.
(2) Every authorised dealer or money changer who fails to collect the tax leviable under this Chapter, or after collecting such tax fails to pay the tax to the credit of the Central Government under sub-section (2) of section 100 shall, in addition to the payment of the tax, if any, so collected, be liable to pay a penalty not exceeding twice the amount of the tax he would have collected or, as the case may be, twice the amount of the tax collected but not paid to the credit of the Central Government.
(3) No penalty shall be leviable under sub-section (1) or sub-section (2), if the authority specified under sub-section (4), for reasons to be recorded in writing, wavies the amount of penalty so payable.
(4) Subject to the provisions of sub-section (3), any penalty under this section may be adjudged, collected and paid to the credit Central Government by such authority and in such manner as may be specified in the rules made under this Chapter.