(1) The audit under section 43 shall be performed by the appropriate auditing authority which may be-
(a) an officer being a Senior Joint Commissioner or a Joint Commissioner or a Deputy Commissioner or a Sales Tax Officer, as the case may be, to whom the task of audit under section 43 has been assigned by the Commissioner, or by such authority as may be authorised by the Commissioner; or
(b) a team which may consist of one or more Sales Tax Officer, Deputy Commissioner, Joint Commissioner, or Senior Joint Commissioner, as the Commissioner may deem fit, to which the task of audit under section 43 has been assigned by the Commissioner, or by such authority as may be authorised by the Commissioner.
(2) The audit team as referred to in sub-rule (1) may be of the following types:-
(a) Deputy Commissioner and Sales Tax Officer, with Deputy Commissioner as its head (hereinafter referred to as the "team head");
(b) Joint Commissioner, Deputy Commissioner and Sales Tax Officer, with Joint Commissioner as its head (hereinafter referred to as the "team head");
(c) Senior Joint Commissioner, Deputy Commissioner and Sales TaxOfficer, with Senior Joint Commissioner as its head (hereinafter referred to as the "team head"):
Provided that the authority of the audit team to make audit under section 43 shall not be adversely affected by the absence or shortage of one or more of the members of such an audit team.
(3) The auditing authority as referred to in sub-rule (1), may take the assistance of the Assistant Sales Tax Officer for making verification of documents like tax invoices, invoices, cash memo, bills, transport documents, way bills etc.
(4) Where a registered dealer is selected for audit under sub-rule (1) of rule 53 and the task of audit of such dealer is entrusted to an audit team by the Commissioner or by such authority as may be authorised by the Commissioner, the team head or any member of the team as referred to in sub-rule (2), shall issue a notice in Form 21 to such dealer asking him to furnish statements and to produce the documents and records as may be specified therein, to him on the date and time specified in the said notice, such date not being earlier than fifteen working days from the date of issue of such notice:
Provided that if the dealer fails to comply with the requirement of the notice in Form 21, the audit authority shall prepare the audit report on the basis of available records and information.
(5) Where a registered dealer is selected for audit under sub-rule (1) of rule 53 and the task of audit is entrusted to a Senior Joint Commissioner or Joint Commissioner or Deputy Commissioner or Sales Tax Officer, by the Commissioner, or by such authority as may be authorised by the Commissioner, for audit under section 43, he shall issue a notice in Form 21 to such dealer asking him to furnish statements and to produce the documents and records as may be specified therein, to him on the date and time specified in the said notice, such date not being earlier than fifteen working days from the date of issue of such notice:
(6) On the first date fixed in terms of notice in Form 21 issued to a dealer under sub-rule (4) or sub-rule (5), as the case may be, the statements as specified in such notice shall be furnished by the dealer:
Provided that dealers having turnover of sales or contractual transfer price or both of more than rupees ten crore in the year or part of the year in respect of which the notice in Form 21 has been issued for audit, shall also furnish a compact disc containing a soft copy of the statements as specified in such notice.
(7) On completion of audit for any period in respect of which selection has been made on or after the 1st day of April, 2012, in accordance with the provisions of rule 53, the auditing authority who had issued the notice in Form 21 for such period, as referred to in sub-rule (4) or sub-rule (5), or his successor in office, as the case may be, shall prepare a report stating his observation or findings therein regarding the correctness of returns, admissibility of various claims of the dealer for the period for which such audit is made, and also prepare a computation sheet, in Form 27 incorporating the amount of tax, interest or late fee as found to be payable by the dealer for such period upon such audit and send a copy of the report and the notice in Form 27 to the concerned dealer.";
(7A) Where the dealer fails to pay the tax, interest, or late fee as specified in the computation sheet issued in Form 27 and attached to the report in accordance with sub-rule (7), within one month of receipt of such report and the computation sheet in Form 27, such report shall, on expiry of one month from the date of such receipt, be deemed to be an order of assessment and the computation sheet in Form 27 attached to the report shall be deemed to be a notice of demand and such amount as specified in the notice in Form 27 shall be payable within fifteen days thereafter.
(7B) The provisions of the proviso to sub-rule (2), sub-rule (3), sub-rule (4) and sub-rule (5), of rule 59 shall, mutatis mutandis, apply to the dealers to whom computation sheet in Form 27 have been issued under sub-rule (7) and on expiry of the time specified in sub-rule (7A), such compensation sheet shall be deemed to be a notice of demand.
(8) If upon preparation of an audit report under sub-section (3) of section 43 it appears to the auditing authority that there are discrepancies of the nature mentioned in sub-section (5) of section 43, proceedings to make assessment under clause (ca) of sub-section (1) of section 46 shall be initiated by the authority who had prepared the relevant audit report, or his successor-in-office, as the case may be, and assessment of the dealer under section 46 for the period under such audit shall be made by such authority.