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

238A. Manner of imposition of penalty under section 98B

(1) Where, upon verification of the information in the statement furnished under section 98A by a dealer, it appears to the appropriate assessing authority that it is necessary to proceed against such dealer under sub-section (1) of section 98B, such authority shall serve upon such dealer a notice in Form 51A directing such dealer to appear before him in person or through an authorised agent, and-

(a) to produce before him the books of accounts, registers or documents for examination,

(b) to explain the books of accounts or documents produced by such dealer or evidence which came into possession of such authority, and

(c) to show cause on the date specified in such notice why penalty, not less than fifteen per centum, but not exceeding twenty-five percentum, of the value of the goods claimed to have been transferred by him otherwise than by way of sale in West Bengal, shall not be imposed on him.

(2) The dealer may, if he so wishes, prefer any objection in writing, or he may adduce any evidence in support of his contention, on the date of hearing.

(3) After examining the books of accounts, documents or evidence, produced by the dealer and considering his objection, the appropriate assessing authority shall impose penalty, not exceeding the amount specified in the notice issued under sub-rule (1), upon the dealer under sub-section (2) of section 98B as he deems fit and reasonable and shall serve a notice in Form 52A upon such dealer directing him to make payment of the amount specified in the notice within fifteen days from the date of service of such notice and to produce the receipted challan in proof of such payment before such authority.