55.
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. 5000/- (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.