Imposition and demand of penalty for the failure of a transporter, carrier or transporting agent to make application for enrolment.

18. (1) Where it appears to the appropriate enrolling authority that a transporter, carrier or transporting agent is liable to pay penalty under sub-section (2) of section 25 for his failure to make application for enrolment, he shall serve a notice in Form No. 4 upon such transporter, carrier or transporting agent directing him to appear in person or through his agent and show cause on the date and at the time and place specified in such notice as to why such a penalty as proposed in the notice, shall not be imposed on him.

(2) The appropriate enrolling authority shall fix a date for hearing ordinarily not less than fifteen days from the date of issue of such notice.

(3) The appropriate enrolling authority, after hearing the transporter, carrier or transporting agent, as the case may be, may, by an order in writing, impose such amount of penalty as he deems fit and proper and shall serve a notice in Form No. 5 upon the transporter, carrier or transporting agent directing him to pay the amount of penalty so imposed specifying the date, not less than twenty days after the service of the notice, by which the payment shall be made and the date by which the receipted challan proving such payment shall be produced before the said authority.