(1) Where a dealer required to file return under sub-sections (1),(2) or (3) of section 33 -

(a) fails without sufficient cause to pay the amount of tax due as per the return for any tax period; or

(b) makes voluntary disclosure under sub-section (5) of section 33 showing a higher amount of tax to be due than was shown by him in the original return; or

(c) fails to furnish return,

such dealer shall be liable to pay interest in respect of -

(i) the tax, which he fails to pay according to the return ; or

(ii) the difference of the amount of tax according to the voluntary disclosure; or

(iii) the tax payable for the period for which he has failed to furnish return ;

at the rate of two per centum per month from the date the return for the period was due to the date of its payment or to the date of order of assessment , whichever is earlier.

(2) If a registered dealer, without sufficient cause, fails to pay the amount of tax due and interest payable thereon along with return or revised return in accordance with the provisions of sub-section (1), the Commissioner may, after giving the dealer a reasonable opportunity of being heard, direct him to pay in addition to the tax and the interest payable by him, a penalty at the rate of two per centum per month on the tax and interest so payable, from the date it had become due to the date of its payment or the order of assessment , whichever is earlier.

(3) If a registered dealer or any other dealer required to furnish return under sub-section (2) of section 33, without any sufficient cause, 

(a) fails to comply with the requirements under sub-section (2) or (3) of section 33, or

(b) fails to furnish, the proof of payment in relation to any voluntary disclosure made in accordance with sub-section (5) of section 33, or

(c) fails to furnish the proof of payment as required under sub-section (6) of section 33,

the Commissioner may, after giving the dealer a reasonable opportunity of being heard, direct him to pay in addition to any tax, interest and penalty under sub-sections (1) and (2) payable or paid by him, a penalty of a sum of rupees one hundred per each day of default subject to a maximum of rupees ten thousand.

(4) The penalties as provided under this section may be imposed by the Commissioner notwithstanding the fact that assessment proceedings have not been initiated against the dealer under section 42 or section 43.

(5) Any penalty imposed under this section shall be without prejudice to any prosecution for any offence under this Act.