(1) Where Commissioner, or the Special Commissioner, or the Additional Commissioner, as the case may be, finds that a person has contravened the provisions of section 94A and a penalty is required to be imposed in accordance with the provisions of section 94B, such authority shall serve a notice in Form 66 upon such person directing him to appear in person or through his agent on the date and at the time and place specified in such notice and to show cause as to why a penalty under sub-section (1) of section 94B shall not be imposed on him.

(2) The authority referred to in sub-rule (1) shall fix a date for hearing ordinarily not before fifteen days from the date of issue of the notice referred to in sub-rule (1).

(3) The person on whom a notice has been served under sub-rule (1) may prefer objection to the imposition of penalty and adduce evidence in support of such objection.

(4) The authority referred to in sub-rule (1) may, after considering the objection and the evidence produced in this behalf impose upon such person a penalty, by passing an order in writing in accordance with the provisions of section 94B.

(5) When a penalty is imposed under sub-rule (4), the authority referred to in that sub-rule shall serve upon the person, alongwith copy of the relevant order, a notice in Form 67 directing him to pay the amount of penalty imposed within the date specified in such notice and shall fix a date, by which the receipted challan in proof of such payment shall be produced before him