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40.—(1) After the completion of a re-examination for the purposes of an appeal under section 45(3) or (4) of the 1972 Act the Secretary of State may repay to the appellant, as he thinks fit, either the whole or part of the fee paid on the appeal, where it appears to him there were substantial grounds for contesting the whole or part of the determination against which the appeal was made.
(2) A fee payable on an appeal in accordance with these Regulations shall be payable notwithstanding that the vehicle is not submitted for re-examination in accordance with regulation 25(8) or in accordance with that regulation as applied by any other regulation contained in these Regulations:
Provided that, if the appellant has before the time fixed under regulation 25, or under that regulation as so applied, for the carrying out of the re-examination given the Secretary of State not less than two clear days' notice (whether in writing or otherwise) at the office at which his appeal was lodged that the appellant does not propose to submit the vehicle for re-examination at that time, the appeal shall be treated for the purposes of this regulation as one in respect of which no fee is payable and any amount previously paid in respect of such a fee shall be repaid by the Secretary of State to the appellant unless another time is arranged for carrying out of the re-examination.
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