64. Imposition of penalty for failure to issue cash memo or bill

(1) If a registered dealer or a dealer contravenes the provisions of section 63, the Commissioner may, after giving such dealer a reasonable opportunity of being heard, by an order in writing, direct that he shall pay, in the prescribed manner, by way of penalty, a sum equal to thrice the amount of tax which could have been levied under this Act in respect of the sales referred to in that section where no cash memorandum or bill has been issued, or five thousand rupees, whichever is greater :

PROVIDED that if such registered dealer or dealer proves to the satisfaction of the Commissioner that he deals exclusively in good specified in Schedule I, sales of which are declared tax free under section 24, or that it is not practicable for such registered dealer or dealer to issue cash memorandum or bill against each transaction in view of the circumstances and nature of his business, the Commissioner may exempt such registered dealer or dealer from payment of penalty or impose such lesser amount of penalty as he deems fit and proper.

(2) Any penalty imposed under sub-section (1) shall be paid by the registered dealer or dealer into a Government Treasury or the Reserve Bank of India by such date as may be specified in a notice to be issued by the Commissioner in this behalf, and the date to be so specified shall not be less than fifteen days from the date of service of such notice.

(3) Any amount of penalty that remains unpaid after the date specified in the notice referred to in sub-section (2) shall be recoverable in accordance with the provisions of section 52.