Section 7 in The Research And Development Cess Rules, 1996
7. Manner of holding inquiry .-(1) Before imposing any penalty under sub-section (2) of section 9 of the Act the Board shall authorise in writing one or more of its officers to make inquiry into the affairs of the industrial concern.
(2)The officer authorised under sub-rule (1) shall issue to the industrial concern a notice addressed to the registered office or principal place of business directing it to show cause as to why the penalty specified in the notice should not be imposed.(3)The industrial concern may, within thirty days from the date of receipt of the said notice, send to the officer concerned a reply together with copies of documentary or other evidence relied on in such reply.(4)The officer authorised under sub-rule (1) may, if so requested by the industrial concern, give a personal hearing to enable the industrial concern to explain its stand in regard to the arrears of cess.(5)If at any stage of inquiry, the officer authorised under sub-rule (1) is satisfied that the default was on account of good or sufficient reason, he shall not proceed further with the inquiry and report the fact to the Board.(6)If the officer authorised under sub-rule (1) is satisfied after inquiry that there was no good or sufficient reason for the default committed by the industrial concern, he shall send his report to the Board.(7)On receipt of the report of the officer authorsed under sub-rule (1), the Board shall impose on the industrial concern, such penalty as it deems fit not exceeding ten times the amount of arrears.(8)The penalty imposed under sub-rule (7) shall be recoverable in accordance with the procedure laid down in sub-rule (3) of rule 6.
