(1) (a) Where a dealer required to file return under section 33 commits any one or more of the offences referred to in sub section (1), (2) or (3) of section 34, the commissioner may issue notice in Form VAT-205 calling upon the said dealer to show cause as to why interest and / or penalty shall not be levied under sub section (1) and sub section (2) and/or (3) of section 34 respectively.

(b) Where the dealer fails to respond to such notice or explain the default in conditions specified in the notice to the satisfaction of the authority issuing the notice under sub-rule (1), interest shall be levied under sub section (1) and / or penalty shall be imposed under sub-section (2) and / or sub section (3) as the case may be, of section 34 and an order to that effect shall be issued in Form VAT-206.

(2) Omitted.

(3) The interest and/or penalty imposed under sub-rule (1) shall be paid by way of a receipted challan from the Government Treasury or e-challan or crossed demand draft or banker's cheque, drawn in favour of the Deputy /Assistant Commissioner or Sales Tax Officer of the circle.