(1) (a) Notwithstanding anything contained in this Act, the Government may, by notification published in the Official Gazette and subject to such conditions and restrictions, if any, as it may specify therein, permit any retail dealer, whose gross turnover calculated from the commencement of any year first exceeds within such year the taxable quantum but does not exceed such amount as may be specified by the Government in such a notification, to pay at his option, in lieu of the amount of tax payable under the provisions of this Act, an amount by way of composition calculated at the rate as may be fixed by the Government in the said notification but not exceeding five percentum of such gross turnover.

Explanation.- For the purpose of this sub-section, the expression "retail dealer" shall mean any dealer who purchases goods inside the State and re-sells such goods exclusively within the State to a person, who purchases the goods for his own use and not for resale.

(b) If on the basis of evidences reasonable grounds exist to believe that the dealer was not eligible to pay tax at a rate fixed under this sub-section, the Prescribed Authority may, impose a penalty equivalent to three times of the amount of tax arrived at after applying the rate notified under this sub-section to the gross turnover of the dealer computed on the basis of evidence available in this regard:

Provided that no order under this sub-section shall be passed without giving the dealer a reasonable opportunity of being heard.

(2) Notwithstanding anything contained in this Act, the Government may, by notification published in the Official Gazette and subject to such conditions and restrictions, if any, as may be specified therein, permit any dealer liable to pay tax on sales effected by way of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, to pay, at his option, in lieu of the amount of tax payable by him under this Act, an amount by way of composition at the rate specified in the said notification but not exceeding six percentum of the total contract value of the works contract.

(3) Notwithstanding anything contained in this Act, the Government may, by notification published in the Official Gazette and subject to such conditions and restrictions as may be specified therein, permit any class of dealers, to pay in lieu of the tax payable under this Act, for any period, an amount, linked with the production capacity or the extent of business, or calculated at a fixed rate of gross receipts of business or some such other thing, to be determined by the Government by way of composition and to be paid at such intervals and in such manner, as may be prescribed, and the Government for the purpose of this Act may, in respect of such class of dealers, prescribe simplified system of maintenance of accounts and filing of returns which shall remain in force during the period of such composition.

(3A) Notwithstanding anything contained in this Act, the Government may, by notification published in the Official Gazette and subject to such conditions and restrictions, if any, as may be specified therein, permit any registered dealer, who imports taxable goods into Assam or manufactures taxable goods within Assam, where such taxable goods are sold on maximum retail price basis printed on the package of such goods, to pay, at his option, in lieu of the amount of tax payable by him under this Act, tax at such rate on the maximum retail price of such goods, as the Government may specify in such notification.

(4) A dealer in whose case composition under this section is in force, shall not,-

(i) be entitled to any claim of input tax credit in respect of purchase of any goods by him in the State; and

(iii) issue tax invoice to any dealer who has purchased the goods from him.

(5) The option so exercised under this section shall be final for that year and shall continue for subsequent years until the dealer becomes ineligible, or withdraws his option in writing.