(1) The appropriate Senior Joint Commissioner, or Joint Commissioner, or Deputy Commissioner, or Sales Tax Officer, as the case may be, shall scrutinise, either electronically or otherwise, every return of a dealer under sub-section (1) of section 41 and if any mistake is detected in the return upon such scrutiny, the Senior Joint Commissioner, or Joint Commissioner, or Deputy Commissioner, or Sales Tax Officer, as the case may be, shall serve a notice in Form no. 20 upon the dealer concerned directing him to rectify the same or to furnish such information required for making the return correct and complete or to furnish the documents as referred to in sub-section (1) of section 41 or to pay the amount of net tax, late fee as referred to in sub-section (2) of section 32, payable in deficit along with the interest payable under sub-section (1) or sub-section (3) of section 33, or both, and to produce the receipted copy of challan or challans in proof of payment before such Senior Joint Commissioner, or Joint Commissioner, or Deputy Commissioner, or Sales Tax Officer, as the case may be, within the date specified in the said notice:

Provided that if the dealer is found to have paid net tax, late fee or interest under sub-section (4) of section 41 in excess of the amount payable according to such return, the appropriate officer shall inform no. the same to the dealer by sending a notice in Form No. 20 within one month of completion of such scrutiny.

(2) If upon receipt of the notice referred to in the sub-rule (1), the dealer complies with the direction made in such notice and furnishes proof of such compliance including a copy of the receipted challan, the Senior Joint Commissioner, or Joint Commissioner, or Deputy Commissioner, or Sales Tax Officer, as the case may be, shall make a record of the same and close the scrutiny.

(3) If the dealer, upon receipt of the notice referred to in the sub-rule (1), does not comply with such directions or express his disagreement in writing adducing reasons for such disagreement with the directions made in such notice, the Senior Joint Commissioner, or Joint Commissioner, or Deputy Commissioner, or Sales Tax Officer, as the case may be,unless he accepts such reasons as correct and justified, in addition to any other action under the Act, may-

(a) initiate assessment proceeding under section 46 in respect of such registered dealer for the year containing the period for which the return was so scrutinised,

(b) initiate assessment proceeding under sub-section (1) of section 48 in respect of such unregistered dealer:

Provided that where the aforesaid authority is satisfied with the reasons adduced by the dealer, he shall make a record of the same and close the scrutiny.