(1) Where the return submitted under sub-section (1) of section 17 by any dealer specified under Rule 21B is not in the prescribed manner or not accompanied by the prescribed documents or where the details furnished in the return are incorrect, the assessing authority shall, after recording its reasons, reject the return.

(2) Where a return is rejected under sub-rule (1) the assessing authority shall issue a notice to the dealer in Form No. 11 on or before the due date for the filing of the return for the next return Period.

(3) A dealer whose return is rejected under sub-rule (1) may, file a fresh return, curing the defects, within ten days after the receipt of the notice specified in sub-rule (2) and accompanied by such documents as provided under sub-rule (1) of Rule 21B together with proof of payment of interest on the tax payable at the rates provided under sub-section (3) of section 23 for the period from the due date of filing of return till the date of filing of such fresh return. The assessing authority, shall acknowledge the receipt of the return in the manner specified under sub-rule (1) of Rule 21B. Thereupon, the return shall be deemed to have been accepted and the assessment for the return period shall, subject to the provisions of sections 18,19,19A, 19B and 19C be deemed to have been completed.

(4) If any dealer fails to submit any return as provided under sub-section (1) of section 17 or files incorrect return and fails to file a fresh return as provided under sub-rule (3), the assessing authority shall estimate the turnover for the return period and complete the assessment to the best of its judgment.

(5) No assessment under sub-rule (4) shall be completed without affording the dealer an opportunity of being heard.

(6) On receipt of the notice under sub-rule (5), if the dealer files a return for the return period as provided under sub-section (1) of section 17 and accompanied by proof of payment of tax payable and interest on this amount from the due date for filing of return till the date of filing of return at the rates specified in sub-section (3) of section 23 and double the amount of interest so due as penalty, the assessing authority shall drop the proposal for assessment under sub-section (3) the return shall, subject to the provisions of section 18,19,19A,19B and 19C, be deemed to have been accepted under section 17A and the assessment for the return period shall be deemed to have been completed as and when the assessing authority acknowledges the receipt of the return in the manner specified under sub-rule (1) of Rule 21B.