(1) Any person who fails to obtain registration card as required under section 7 shall be liable to pay, by way of penalty, a sum equal to the amount of tax due for each year of default.
(2) Any employee (other than Government or Central Government) who fails to furnish a return as required by sub-section (2) of section 5, or fails to furnish it within the prescribed period, shall be liable to pay by way of penalty a sum equal to the amount of tax that was payable for the return period.
(3) No penalty under sub-section (1) or sub-section (2) shall be levied if the affected person on a show cause notice served on him proves to the satisfaction of the Assessing Authority that he was prevented by sufficient cause from obtaining the registration card or furnishing the return or furnishing it within the prescribed period, as the case may be.
(4) Notice of demand in prescribed form shall be served requiring the assessee to deposit the penalty levied within a period of 15 days from the date of service of the said notice.