(1) The Commissioner may, in such circumstances and subject to such conditions as may be prescribed, permit a dealer referred to in subclause (h) of clause (10) of section 2, to pay at his option in lieu of amount of tax leviable from him under this Act, a lump sum tax by way of composition at the rate as may be fixed by the State Government by notification in the Official Gazette.

(2) The provisions of sub-sections (4) and (5) of section 14B shall apply mutatis-mutandis to a dealer who is permitted under sub-section (1) to pay lump sum tax by way of composition.

(3) The permission granted under sub-section (1) shall remain valid so long as the provisions of this section and rules made in this behalf are complied with. In case of breach of any of the provisions, the dealer shall be liable to pay tax under sections 7 and 9 for such tax period as may be prescribed.