(1) Notwithstanding anything contained in section 45, section 47 and section 49 and subject to such conditions, restriction and in such manner, as may be prescribed, the Commissioner shall, from among registered dealers, select on a random basis, or upon information or otherwise, such percentage, or such class or classes of dealers, as may be prescribed, for audit of the accounts, registers or documents, including those in the form of electronic records, maintained or kept by such dealer for any year or part thereof, not being a period which has ended five years previous to the day of selection;

Provided that where selection of a registered dealer under this sub-section has been made in respect of any year or part thereof and where in respect of such year or part thereof, an assessment has already been made under sub-section (1) of section 46 or an "assessment made under sub-section (2) of section 45 has not been revoked under sub-section (3) or sub-sectIon (4) of section 45, such registered dealer for such year or part thereof shall be deemed to have not been selected under this sub-section.

(2) After a selection is made under sub-section (1), the Commissioner shall, with due notice to the dealer so selected, proceed to audit the accounts, registers and documents, including those in the form of electronic records, maintained or kept by the dealer to verify the correctness of returns furnished and the admissibility of various claims including the input tax credit or input tax rebate or refund, for the year or part thereof referred to in sub-section (1).

(3) The Commissioner shall, after considering all the evidence produced in course of the proceedings or collected by him, or to the best of his judgement where the dealer has failed to comply with the notice issued under sub-section (2) 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 the form and manner as may be prescribed, to be attached with the report showing quantification of tax, interest, or late fee payable by him.

Provided that where a dealer pays in full the amount specified in the computation sheet, the return(s) submitted by the dealer for the relevant period shall be eligible to be considered for deemed assessment under section 47 or summary assessment under section 47AA, as the case may be. (proviso shall be deemed to have been inserted with effect from the 1st day of April, 2012.)

(4) Any audit under this section shall be completed within six months from the date on which the selection is made by the Commissioner:

Provided that where the Commissioner is satisfied that audit in respect of such dealer cannot be completed within six months from the date of selection, he may, upon giving the dealer an opportunity of being heard and for the reasons to be recorded in writing, extend the period for another six months:

Provided further that the order of such extension shall be made within six months from the date of selection for audit and such order shall be immediately communicated to the dealer.

(5) Where, from the finding contained in the report prepared under sub-section (3), it appears to the Commissioner that in the return furnished by such registered dealer under section 32 in respect of a year or part of such year,-

(a) certain sale price or part thereof, contractual transfer price or part thereof, has not been disclosed in such return, or has escaped levy of tax thereon at the appropriate rate, erroneously or otherwise, or

(b) certain purchase price or part thereof bas not been disclosed in such return, or has escaped levy of tax thereon at the appropriate rate, erroneously or otherwise, or

(c) the deductions from the turnover of sales were claimed under sub-section (1) of section 16 in such return, erroneously or otherwise, in excess of what is admissible under sub-section (1) of that section, or the deductions so claimed in such return are not supported by evidence referred to in sub-section (1) of that section, or

(d) excess amount of input tax credit or input tax rebate has been enjoyed by the dealer for that period, and no reverse credit for such excess amount bas been made by such dealer, or

(e) the information furnished are not correct and complete, or

(f) there are certain other discrepancies.

which has resulted in reduction of the amount of net tax payable by such registered dealer or the State Government has suffered loss of revenue on any of the grounds referred to in clause (a), or clause (b) or clause (c), or clause (d), or clause (e), or clause (f), of this sub-section on account of such registered dealer in respect of such year or part of such year, the Commissioner shall, in accordance with the provision of sub-section (1) of section 46, assess to the best of his judgment the amount of net tax payable by such dealer in respect of such year or part thereof, as he may deem fit and proper:

Provided that where the assessment, as referred to in this sub-section, has to be made under sub-section (1) of section 46 in respect of such year or part of such year for which the assessment is deemed to have already been made under sub-section (1) of section 47, the Commissioner shall make such assessment in respect of such year or part of such year in accordance with the provisions of the proviso to sub-section (3A) of section 47.

Provided further that no assessment under sub-section (1) of section 46 shall be made, where the dealer has admitted, in writing, the observations made in the report referred to in sub-section (3) and has paid in full the amount of net tax paid in short, due to excess claim of input tax credit or input tax rebate or non-reversal of input tax credit, or for any other reason as mentioned in such report, with interest as payable under section 33:

Provided also that the provisions of the second proviso shall not be applicable in respect of assessment required to be made under sub-section (1) of section 46 for reasons to be recorded in writing.

(5A) Notwithstanding anything contained in sub-section (5), where the dealer fails to pay the tax, interest, or late fee as stated in the computation sheet attached to the report, in respect of any selection made under sub-section (1) on or after the 1st day of April, 2012, drawn under sub-section (3), within one month of receipt of such report and the computation sheet, such report shall, on expiry of one month, be deemed to be an order of assessment under sub-section (1) of section 46 and the computation sheet attached to the report shall be deemed to be a notice of demand upon such assessment and such amount shall be payable within fifteen days thereafter:

Provided that where an amount of net tax or interest or late fee is found to have been paid in excess as mentioned in such report and computation sheet, on expiry of one month as stated above, the said computation sheet shall be deemed to be a notice of demand.

(6) Omitted.