Section 86(7) in Daman and Diu Value Added Tax Regulation, 2005
(7)Where a person has applied for grant of certificate of registration under sub-section (5) of section 18 as a dealer under this Regulation and he -(a)fails to undertake business which would entitle him to be a dealer, within the period specified in his application; or(b)fails to comply with any of the restrictions or conditions subject to which certificate of registration was granted,such dealer shall be liable to pay a penalty of ten thousand rupees.
