(1) The Commissioner shall, under sub-section (1) of section 43, select ordinarily by the 31st March every year, a certain number of registered dealers for audit under section 43, by draw of lots either mechanically or with the use of computers:
Provided that the Commissioner may, upon receipt of information or otherwise, select those dealers for audit, who according to him are required to be audited for any tax period or return period or such other period, as he may deem fit and proper:
Provided further that where a registered dealer in the year for which selection is being made has shown a growth of thirty per centum or above in the payment of net tax under the Act over the net tax paid in the year immediately preceding that year, without taking into consideration the growth owing to increase in rate of tax of goods dealt in by such dealer or to withdrawal of exemption from tax on goods dealt in by such dealer, if any, may not be selected for audit for that year:
Provided also that the provisions of the second proviso shall not be applicable to a dealer against whom any information or adverse report from Bureau of Investigation or other investigating authority exists regarding evasion of tax:
Provided also that where selection of a certain number of registered dealers for audit uner section 43 is required to be made in respect of a period or aggregate of periods falling within the year ending on the 31st day of March, 2007, such selection of registered dealers sall, notwithstanding the provisions of this sub-rule, be made within the 31st day of July, 2008.
Provided also that the number of dealers to be selected by the Commissioner shall depend on the result of analysis of their returns and on the number of auditing authorities or teams engaged for such an audit
(2) The audit referred to in sub-rule (1), may be made for a period or for aggregate of periods.
(3) Omitted w.e.f. 01-04-2013
(4) Upon selection of registered dealers under sub-section (1) of section 43 in the manner laid down under sub-rule (1), the Commissioner shall send the list of registered dealers so selected to the appropriate audit authority for conducting audit under sub-section (2) of section 43 and the list shall also be displayed for public viewing at the office of the appropriate assessing authority of dealers so selected.