26. Imposition of penalty for failure to get registered.

(1) If a dealer, fails to apply for registration within thirty days from the date on which he is first liable to pay tax, he shall be liable to pay a penalty which shall be one hundred rupees for each day of default and such dealer shall, before filing the application for registration, deposit the penalty for the period from the day next to the date of expiry of thirty days to the date immediately preceding the date of application. If, after considering the evidence and information under clause (a) of sub-section (3) of section 21, it appears to the Prescribed Authority that,—

(a) the date of liability as disclosed in the application form is later than actual date of liability resulting into short payment of penalty by the dealer or where the dealer has failed to apply for registration on being asked so to do or where the dealer has filed the application for registration but has failed to deposit the amount of penalty before filing such application, he may, after giving the dealer a reasonable opportunity of being heard, by an order impose by way of penalty a sum not less than one hundred rupees and not exceeding three hundred rupees, for every day of default:

Provided that no penalty shall be imposed under this sub-section in respect of the same fact for which a prosecution has been instituted and no such prosecution shall lie in respect of a fact for which a penalty has been imposed under this section.

(b) the date of liability as disclosed in the application form is prior to the actual date of liability and the amount of penalty deposited by the dealer is more than the amount of penalty leviable under the provision of sub-section (1), he shall, by an order in writing, adjust such excess against any sum payable by the dealer under this Act, or, if there is no sum so payable, refund it to the dealer.

(2) If any penalty is imposed under sub-section (1), the Prescribed Authority shall issue a notice in the prescribed form directing the dealer to pay such penalty by such date as may be specified in the notice, and the date to be specified shall not be less than fifteen days from the date of service of such notice and the penalty so imposed shall be paid by the dealer into the Government account by the date so prescribed.