Penalty for failure to file a return
(1) Any VAT dealer, who fails to file a return where no tax is due, by the end of the month in which it was due, shall be liable to pay a penalty of Rs.2,500/-(Rupees two thousand five hundred only).
(2) Any dealer registered under sub-section (7) of Section 17 who fails to file a return where no tax is due shall be liable to pay a penalty of Rs.500/-. (Rupees five hundred only).
(3) Where a dealer files a return, after the last day of the month in which it is due, he shall be liable to pay a penalty of fifteen percent of the tax due:
Provided that before levying penalty under this Section the authority prescribed shall give the dealer a reasonable opportunity of being heard.