The West Bengal Sales Tax Rules, 1995
Chapter XVI : Manner of imposition of penalty for default in deduction from payment to works contractors, for concealment of sales, unauthorised use of goods or importer use of declaration forms

238. Manner of imposition of penalty on the registered dealers for improper use of declarations and payment of such penalty

(1) Where it appears to the appropriate assessing authority that it is necessary to proceed against a registered dealer or an undertaking under sub-section (1) of section 78, such authority shall serve upon such dealer or undertaking a notice in Form 51 directing him to appear before him in person or through an authorised agent and

[a] produce the books of accounts, bills or cash memo and documents, relating to sales referred to in that sub-section against which declaration has been furnished by him,

[b] explain the books of accounts or documents produced by such dealer or undertaking and

[c] show cause as to why a penalty for an amount as specified in the notice shall not be imposed on him.

(2) The appropriate assessing authority shall specify the date for hearing in the notice under sub-rule (1) ordinarily not less than twenty days from the date of issue of such notice.

(3) The procedures for service of notice, hearing, passing of order for imposition of penalty and payment of penalty imposed under section 77 as referred to in sub-rule (3), sub-rule (4), sub-rule (5) and sub-rule (6) of rule 237 shall apply mutatis mutandis for imposition of penalty under section 78 and payment thereof.