(1) Where any person is required to make payment of net tax or any other tax, interest, penalty, security, late fee or any other fees, payable under the Act or rules made thereunder, to the appropriate Government Treasury, he shall obtain the challans for this purpose from any Government Treasury or from the office of any Additional Commissioner or Senior Joint Commissioner or Joint Commissioner.

(2) Such challans, in quadruplicate, shall be filled up and signed by the dealer or the authorised representative of such dealer and shall be presented to the appropriate Government Treasury.

(3) Omitted w.e.f. 01-07-2014.

(3A) Omitted w.e.f. 01-07-2014.

(4) One copy of such challan evidencing payment of net tax or any other tax, interest, penalty, security, late fee or any other fees shall be retained by the appropriate Government Treasury, one of such challans shall be sent to the appropriate authority and the other two copies shall be returned to the person as proof of payment.

(5) Notwithstanding anything contained in sub-rule (1), sub-rule (2), sub-rule (3) and sub-rule (4), any person required to make any payment of net tax, any other tax, interest, late fee, penalty, security, fee or any other amount including deposit of any nature, shall make such payment only through GRIPS in the manner as given in the website of the Directorate.

(5A) Omitted w.e.f. 01-07-2014.

(6) Notwithstanding anything contained in sub-rule (5),-

(a) where the amount of net tax or any other tax or the aggregate of the amounts of net tax or any other tax, paid by a registered dealer, required to furnish return under sub-rule (1) of rule 34 or sub-rule (3) of rule 34A, in the year ending on the 31st day of March, 2009 in respect of the return or returns, as the case may be, for any year or years exceeds rupees ten lakh, such registered dealer shall, subject to any other provision or provisions made in this connection under this rule, make payment of net tax or any other tax, interest, penalty or late fee, payable by, or due from, him under the Act or rules made thereunder electronically through the concerned web sites of such banks as referred to in sub-rule (5) on and from the 1st day of November, 2009 until such time the certificate of registration granted to such dealer is cancelled under sub-section (1) of section 29 or under sub-section (2) of section 30;

(b) where the amount of net tax or any other tax or the aggregate of the amounts of net tax or any other tax, paid by a registered dealer, required to furnish return under sub-rule (1) of rule 34 or sub-rule (3) of rule 34A, other than the registered dealer referred to in clause (a), in a year which commences on or after the 1st day of April, 2009 in respect of the return or returns, as the case may be, for any year or years exceeds rupees ten lakh in such year, such registered dealer shall, subject to any other provision or provisions made in this connection under this rule, make payment of net tax or any other tax, interest, penalty or late fee, payable by, or due from, him under the Act or rules made thereunder electronically through the concerned web sites of such banks as referred to in sub-rule (5) from the first day of the year immediately following such year until such time the certificate of registration granted to such dealer is cancelled under sub-section (1) of section 29 or under sub-section (2) of section 30.

(c) where the amount of net tax or any other tax or the aggregates of the amounts of net tax or any other tax, paid by a registered dealer, required to furnish return under sub-rule (1) of the rule 34 or sub-rule (3) of rule 34A in a year ending on the 31st day of March, 2011 exceeds rupees two lakh, in respect of return or returns, as the case may be, such registered dealer shall, subject to any other provision or provisions made in this connection under this rule, make payment of net tax or any other tax, interest, penalty or late fee, payable by or due from him under the Act or rules made thereunder electronically through the concerned website of such banks as referred to in sub-rule (5) on and from the 1st day of April, 2012, until such time the certificate of registration granted to such dealer is cancelled under sub-section (1) of section 29 or under sub-section (2) of section 30:-

Provided that if a registered dealer makes payment manually under sub-rule (1) of this rule for any return period though he has become liable to make such payment electronically, he shall pay penalty not exceeding rupees three hundred only for each such manual payment: Provided further that the Commissioner may waive such payment of penalty payable by a dealer if he is satisfied that the circumstances under which the dealer had made such payment manually was beyond his control.

(d) where the amount of net tax or any other tax or the aggregate of the amounts of net tax or any other tax, paid by a registered dealer, required to furnish return under sub-rule (1) of rule 34 or sub-rule (1) of rule 34A in a year which commences on or after the 1st day of April, 2011, exceeds Rs. two lakh in respect of return or returns, as the case may be, such registered dealer shall, subject to any other provision or provisions made in this connection under this rule, make payment of net tax or any other tax, interest, penalty or late fee, payable by or due from, him under the Act or rules made thereunder electronically through concerned websites of such banks as referred to in sub-rule (5) from the first day of the year immediately following such year until such time the certificate of registration granted to such dealer is cancelled under sub-section (1) of section 29 or under sub-section (2) of section 30:

Provided that if a registered dealer makes payment manually under sub-rule (1) of this rule for any return period though he has become liable to make such payment electronically, he shall pay penalty not exceeding rupees three hundred only for each such manual payment:

Provided further that the Commissioner may waive such payment of penalty, payable by a dealer if he is satisfied that the circumstances under which the dealer had made such payment manually was beyond his control.

(7) Before imposition of penalty under first proviso to clause (c) or under first proviso to clause (d), the appropriate assessing authority/the appropriate auditing authority shall serve a notice in Form 4P upon the dealer directing him to show-cause on the date, time and place specified in such notice as to why such penalty as proposed in the notice shall not be imposed on him. The authority shall fix a date for hearing ordinarily not less than twenty days from the date of issue of such notice. The appropriate authority after hearing may, by an order in writing, impose such amount of penalty as he deems fit and proper and shall serve a notice in Form 5P upon the dealer directing him to pay the amount of penalty so imposed specifying the date, not less than twenty days after the service of the notice, by which the payment shall be made and the date by which the receipted challan proving such payment shall be produced before said authority.