(1) (a) After submission of declaration forms and/or certificates as prescribed in rule 7A of these rules, the declaration forms and/or certificates so furnished shall be scrutinized with reference to the return(s) to which the declaration forms and/or certificates relate and in cases where-

(i) such return(s), statements and declaration forms or certificates, as the case may be, are found to be in order, correctly and completely filled in;

(ii) there is no arithmetical mistakes apparent on the face of such return(s) or statement;

(iii) exemptions, deduction, concessions under the Act and the rules made there-under claimed in the return(s) are supported by declaration Forms or Certificates, as the case may be, furnished, and

(iv) the declaration forms and/or certificates referred to sub-clause (iii) above are furnished on/before the due date as prescribed in rule 7A of these rules; the said return(s) shall be accepted as self assessed without any further communication to the dealer filing such return(s), and in that case the date of submission of forms of declaration / certificate along with the statement, shall be reckoned as the date of self assessment:

Provided that in cases where the forms of declaration/certificates as referred to above are furnished after the due date but before the date on which scrutiny of the return to which the forms of declaration/certificates relate is taken up, and, if on scrutiny, the return and the declaration forms are found to be in order, correctly and completely filled in, then the said return shall be accepted as self assessed on the date of such scrutiny:

Provided further that, scrutiny of return(s) with reference to the related forms of declarations/certificates shall be undertaken within one month from the due date for submission of Forms as prescribed in rule 7A.

(b) In cases where any or more of the conditions as mentioned in clause (a) above is not fulfilled, the assessing authority shall proceed to assess the tax due provisionally, giving due opportunity to the dealer, on account of -

(i) declaration forms / certificates not furnished in support of claim for exemption, deduction and/or concession claimed in the return(s); or the declaration (s) and/or certificate (s) so furnished being not in order / incomplete / defective;

(ii) arithmetical mistake apparent on the face of such return(s) resulting in less payment of tax, and/or

(iii) the return(s) so furnished being not in order / incomplete / incorrect:

Provided that, in case of failure to furnish the declaration and certificates as required under sub Section (4) of Section 8 of the Act, the Assessing Authority may, for sufficient cause, permit such further time to the dealer for furnishing the required declaration forms/certificates.

(c) For assessment under clause (b), the registered dealer shall be issued with notice in Form II-B and assessment order and demand notice shall be issued in Form VI A and VII respectively.

(2)(a) Where a registered dealer fails to furnish a return within the time specified under rule 7, the assessing authority, if he is satisfied that provisional assessment is necessary in that case, may, assess the dealer provisionally for the period relating to the said return, notwithstanding anything contained in sub-rule (3).

(b) The provisional assessment shall be made on the basis of past returns or past records and, where no such returns or records are available, on the basis of information received by the assessing authority.

(c) Where a provisional assessment is made, the assessing authority shall serve upon the dealer an order in Form II-C, showing the amount of tax assessed, interest levied and penalty imposed, alongwith a demand notice in Form VII, which such dealer shall be required to pay within thirty days from the date of receipt of the order and produce evidence thereof within seven days from the date of payment.

(d) If the dealer furnishes return alongwith evidence showing full payment of tax due and interest or penalty or both payable if any, under sections 8 and 8A on or before the date specified under clause (c), the provisional assessment made under clause (a) shall stand revoked on the date on which such return is filed by the dealer.

(e) Nothing contained in this rule shall prevent the assessing authority from making assessment under sub-rule (3) and any tax, interest or penalty paid against the provisional assessment under this rule shall be adjusted against tax, interest or penalty payable on such assessment.

(3)(a) Where the tax audit conducted under rule 10 results in detection of suppression of purchases or sales or both, erroneous claims of exemption or deductions under the Act and the rules made thereunder, evasion of tax or contravention of any provision of the Act affecting the tax liability of the dealer, the assessing authority may, notwithstanding the fact that the dealer may have been assessed under sub-rule (1) or (2), serve on such dealer a notice in Form IV alongwith a copy of the "Audit Visit Report" directing him to appear in person or through his authorised representative on such date, time and place, as specified in the said notice for compliance of the requirement of clause (b).

(b) The assessing authority may, in the notice referred to in clause (a), require the dealer to,

(i) produce the books of account maintained under the provisions of the Act and the rules made thereunder;

(ii) furnish records and documents required to be maintained under the Act and the rules made thereunder claiming exemptions or deductions from the Turnover under the Act;

(iii) furnish any other information relating to assessment of tax, levy of interest and imposition of penalty;

(iv) produce such evidence and documents in support of his claim preferred in his return, or any objection he wishes to raise or to rebut the charges or findings made in the "Audit Visit Report"; and

(v) explain the books of account, other accounts, records, documents or information referred to in sub-clauses (i) to (iv),

on the date and the time specified in the notice.

(c) On issuance of notice under clause (a), the dealer shall be allowed time for a period of not less than thirty days for production of information as referred to in clause (b).

(d) The assessing authority shall, while hearing the dealer for making an assessment of tax payable by him, consider the objection, if any, preferred by such dealer, examine the evidence in support thereof, examine the accounts, documents, records or any other evidence furnished under this sub-rule, call for such information or evidence from any person and make such enquiry as deems necessary for the purpose of such assessment:

Provided that not more than three adjournments shall be granted to a dealer for hearing his case.

(e) If the dealer fails to appear or cause appearance, or fails to produce or cause production of the books of accounts and documents as required, the assessing authority may proceed to complete the assessment basing on the materials available in the 'Audit Visit Report' and such other materials as may be available, and after causing such enquiry as he deems necessary.

(f) Where the dealer to whom a notice is issued under clause (a), produces the books of account and other documents, the assessing authority may, after examining all the materials available with him in the record and those produced by the dealer and after causing such other enquiry as he deems necessary, assess the tax due from that dealer accordingly.

(g) Without prejudice to any interest or penalty that may have been levied or imposed under any of the provisions of the Act, an amount equal to twice the amount of tax assessed under clause (e) or (f) shall be imposed by way of penalty in respect of any assessment completed under the said clauses.

(h) Notwithstanding anything contained to the contrary in any of the provisions of the rules, an assessment under this sub-rule shall be completed within a period of six months from the date of receipt of the 'Audit Visit Report'

Provided that if, for any reason, the assessment is not completed within the time specified in this clause, the Commissioner may, on the merit of each such case, allow such further time not exceeding six months for completion of the assessment proceeding.

(i) No order of assessment shall be made under this sub-rule after the expiry of one year from the date of receipt of the 'Audit Visit Report'

(4) (a) Where, after a dealer is assessed under sub-rule (1), (2) or (3) for any period, the assessing authority, on the basis of any information in his possession, is of the opinion that the whole or any part of the turnover of the dealer in respect of any period or periods has escaped assessment, or has been under-assessed, or has been assessed at a rate lower than the rate at which it is assessable or that the dealer has been allowed wrongly any deduction from his turnover or exemption under the Act or has been wrongly allowed set off of input tax credit in excess of the amount admissible under clause ( c) of sub-rule (3) of rule 7 of these rules, he shall serve a notice in Form IV A on the dealer.

(b) The hearing of the dealer shall be concluded in accordance with the provisions of clauses (b) and (d) of sub-rule (3).

(c) The assessing authority shall, after hearing the dealer in the manner specified in clause (b), assess the amount of tax payable by the dealer in respect of such period or periods for which assessment proceedings has been initiated and if he is satisfied that the escapement is without any reasonable cause, he may direct the dealer to pay, by way of penalty, a sum equal to twice the amount of tax additionally assessed.

(d) Where a dealer fails to comply with the requirements of the notice referred to in clause (a), the assessing authority may make an exparte assessment of the tax payable by such dealer and pass an order of assessment in writing, after recording the reasons therein.

(e) No order of assessment shall be made under this sub-rule after expiry of five years from the end of the period in respect of which the tax is assessable.

(5) (a) If the assessing authority, on the basis of audit visit report and any information in his possession, is satisfied that any dealer referred to in rule 9 of these rules, who has been liable to pay tax under the Act in respect of any period, has failed to get himself registered, the assessing authority shall serve a notice in Form IVB alongwith copy of the audit visit report upon such dealer directing him to appear in person or through his authorised representative on such date, time and place, as may be specified in that notice, and produce or make available, the books of accounts, evidence, documents, as may be required for assessment and after causing such inquiry as he deems necessary, assess the amount of tax due from the dealer and if he is satisfied that the default is without reasonable cause, he may direct that the dealer shall pay, in addition to the amount so assessed, a penalty equal to the amount of tax so assessed.

(b) In the event of default by a dealer to comply with the requirements of the notice referred to in clause (a), the assessing authority may make an exparte assessment of the tax payable and penalty thereon by such dealer in respect of such period or periods or part thereof, as the case may be, and pass an order of assessment in writing, recording the reasons therein :

Provided that no penalty shall be levied for the quarter during which the dealer first becomes liable to pay tax under the Act.