Non filing MVAT Returns for new Registration

Dear All,

A client of mine has recently taken VAT Registration under voluntary scheme by paying Rs. 25k deposit for new registration.

However he failed to file his VATreturn. No he has received a notice from the VAT department about 5k penalty.

Can he write a letter to the department to adjust this penalty against the said deposit. (It is assumed that  there is no vat payable during the period the penalty is levied)

Please reply.

Thanks

Rajesh Poddar

Email : rajeshpoddarceo @ gmail.com