(1) If a dealer required to furnish return under sub-section (1) or sub-section (2) of Section 29; without any sufficient cause;

(a) fails to furnish any return by the prescribed date as required under sub-section (1) or sub-section (2) of Section 29; or

(b) being required to furnish revised return, fails to furnish the revised return by the date prescribed under subsection (3) of Section 29;

The prescribed authority shall, after giving such a dealer an opportunity of being heard in the manner prescribed, impose a penalty at the rate not exceeding rupees fifty for every day of such default for any month or any tax period, subject to a maximum of rupees twenty-five thousand in a year.

Explanation-'Return' for the purpose of sub-section (1) shall mean and include the Monthly Abstract, Return for any tax period, Revised Return(s) as well as the Annual Return.

(2) If a dealer fails without sufficient cause to pay the amount of tax due, as prescribed, such dealer shall be liable to pay interest in respect of the tax payable by him for the period at the rate of 2% per month from the date the tax payable has become due to the date of its actual payment.

Explanation I – 'Tax due' for the purpose of sub section( 2) of this section shall include the amount claimed as adjustment towards Input Tax Credit but not supported by the evidence as prescribed.

Explanation II- 'Month' for the purpose of sub-section (2) of this section, shall mean thirty days and the interest and penalty payable in respect of a period of less than one month shall be computed proportionately.