THE WEST BENGAL VALUE ADDED TAX RULES, 2005
CHAPTER XIII : Manner of imposition of penalty, for non-furnishing or furnishing of incorrect information in respect of transfer of goods otherwise than by way of sale, for default in depositing amount of tax collected in violation of the law, for concealment of sales, for failure to obtain permit for organising exhibition- cum- sale.

Body 135. Manner of imposition of penalty for concealment of sales and payment of such penalty.

(1) Where it appears to the appropriate assessing authority or auditing authority or appellate authority or revisional authority or any other authority as authorised by the Commissioner that it is necessary to proceed against a dealer under sub-section (1) of section 96, such authority shall serve upon such dealer a notice in Form 66 directing him to appear before him in person or through an authorised agent and

(a) to produce before him the books of accounts, registers or documents including those in the form of electronic records for examination.

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

(c) and to show cause on the date specified in such notice why penalty as specified in the notice 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 authority referred to in sub-rule (1) shall impose penalty upon the dealer under sub-section (1) of section 96 for such amount as he deems fit and reasonable and serve a notice in Form 67 upon such dealer directing him to make payment of the amount in accordance with the provisions of sub-section (2) of section 96 and to produce the receipted challan in proof of such payment by the date specified in the said notice.