34. Provisional assessment.

(1) Where a dealer fails to furnish a tax return before the due date or if the tax return furnished by him appears to the Prescribed Authority to be incorrect and incomplete or if the dealer fails to furnish a correct and complete return with evidence of payment of tax and interest, if any, under sub-section (2) of section 33, the Prescribed Authority shall proceed to assess the dealer provisionally for the period of default to the best of his judgment recording the reason for such assessment and proceed to demand and collect the tax and interest accordingly:

Provided that no provisional assessment under this sub-section shall be made unless the dealer has been given a reasonable opportunity of being heard.

(2) The provisional assessment under sub-section (1), shall be made on the basis of past returns or past records and where no such returns or records are available, on the basis of information received or collected by the Prescribed Authority and the Prescribed Authority shall direct the dealer to pay the amount of tax assessed in such manner and by such date as may be prescribed.

(3) If the dealer furnishes return along with evidence showing full payment of tax, interest and penalty, if any, on or before the date of payment specified under sub-section (2), the provisional assessment made under sub-section (1) shall stand revoked to the extent of the tax demanded, interest levied and penalty imposed, on the date on which such return is filed by the dealer.

(4) Nothing contained in this section shall prevent the Prescribed Authority from making an audit assessment under section 36 or best judgment assessment under section 37 and any tax, interest or penalty paid against provisional assessment shall be adjusted against, tax, interest and penalty payable on such assessment under those sections.