Penalty for issue of tax invoice and for the use of false tax invoices.

(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. 5,000 (Rupees five thousand only) or 100% of the tax whichever is lower, for each offence. (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) 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): Provided that before levying penalty under this section the authority prescribed shall give the dealer a reasonable opportunity of being heard. (4) (a) Any dealer, who purchases any goods by furnishing a declaration and uses such goods contrary to such declaration, shall be liable to pay a penalty of 200% of the tax leviable in the absence of such declaration on the value of such goods so purchased; (b) any dealer, who claims that any sale of any goods is liable to tax at a reduced rate is found to be in possession of any false or fabricated declaration and pays tax at a reduced rate under the Act, shall be liable to pay a penalty of 200% of the tax leviable in the absence of such declaration on the value of the goods, so sold: Provided that before levying penalty under this sub-section, the assessing authority shall give the dealer a reasonable opportunity of being heard.