(1) If a supplier mistakenly treats a taxable supply as an exempted or a zero-rated one as a result of a false declaration with an intent to cheat by the recipient of such supply, ¹[the Commissioner or the appropriate officer mentioned in the table of section 86] may, after giving such recipient an opportunity of being heard, make a tax determination against such recipient of such supply for payment of the payable VAT in respect of such supply, including any payable interest or penalty arising out of the late payment of the VAT, and such tax determination shall be treated as a determination of VAT payable by such recipient, whether registered or not.

(2) ²[The Commissioner or the appropriate officer mentioned in the table of section 86] shall serve on the recipient of a supply a notice of tax determination which shall‚ in addition to other necessary matters, contain the following information, namely:-

(a) reason for tax determination;

(b) amount of VAT payable as a result of tax determination;

(c) date on which such VAT shall be payable; and

(d) time and place of filing appeal against tax determination.

(3) Nothing in sub-section (1) shall prevent ¹[the Commissioner or the appropriate officer mentioned in the table of section 86] from recovering the payable VAT, interest or penalty in relation to such supply from a supplier, and from recovering a portion of the payable amount from the supplier and the other portion from the recipient.

(4) If a supplier pays to ⁴[the Commissioner or the appropriate officer mentioned in the table of section 86], as a result of any fraudulence or a false statement made by a recipient of supply, an amount of VAT, interest, or penalty for such supply, he may recover the amount so paid from the recipient of such supply.