Penalty for failure to file a return

(1) Any VAT dealer, who fails to file a return where no tax is due, by the end of the month in which it was due, shall be liable to pay a penalty of Rs. 2,500 (Rupees two thousand five hundred only).

(2) Any dealer registered under sub-section (7) of section 17 who fails to file a return where no tax is due shall be liable to pay a penalty of Rs. 500 (Rupees five hundred only).

(3) Where a dealer files a return, after the last day of the month in which it is due, he shall be liable to pay a penalty of fifteen percent of the tax due:

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