(1) Any VAT dealer, who fails to issue a tax invoice or an invoice or a bill or cash memorandum as required by Section 14 and 41 shall be liable to pay a penalty of Rs.5000/- (Rupees five thousand only) or 100% of the tax whichever is lower, for each offence.

(2) Any VAT dealer, who issues a false tax invoice or receives and uses a tax invoice, knowing it to be false, shall be liable to pay a penalty of 200% of tax shown on the false invoice.

(3) Any TOT dealer or any other dealer who fails to issue a bill or cash memorandum as required by Section 41 shall be liable to pay a penalty of Rs.250/- (Rupees two hundred and fifty only).

Provided that before levying penalty under this Section the authority prescribed shall give the dealer a reasonable opportunity of being heard.