Provided that before levying penalty, the authority prescribed shall give the dealer a reasonable opportunity of being heard.

Penalty for failure to issue a tax invoice and for the use of false tax invoices

1. (1) Any VAT dealer, who fails to issue a tax invoice or an invoice or a bill or cash memorandum as required by Sections 14 and 41 shall be liable to pay a penalty of Rs. 5000/- (Rupees five thousand only) or 100% of the tax whichever is lower, for each offence.
2. (2) Any VAT dealer, who issues a false tax invoice or receives and uses a tax invoice, knowing it to be false, shall be liable to pay a penalty of 200% of tax shown on the false invoice.
3. (3) Any TOT dealer or any other dealer who fails to issue a bill or cash memorandum as required by Section 41 shall be liable to pay a penalty of Rs.250/- (Rupees two hundred and fifty only):