(1) If the tax audit conducted under section 9B of the Act results in findings, which the assessing authority considers to be affecting the tax liability of a dealer for a tax period or tax periods, such authority shall serve a notice in Form E 30 along with a copy of the Audit Visit Report, upon such dealer, directing him to appear in person or through his authorised representative on such date, time and place, as specified in the said notice for compliance of the requirements of sub-rules (2) and (3).

(2) The assessing authority may, in the notice referred to in sub-rule (1), require the dealer-

(i) to produce the books of account maintained under the provisions of the Act and these rules;

(ii) to furnish records and documents required to be maintained under the Act and these rules claiming deductions or concessions, as may be applicable;

(iii) to furnish any other information relating to assessment of tax, levy of interest, imposition of penalty; and (iv) to explain the books of account, other accounts, records, documents or information referred to in sub-clauses (i), (ii) and (iii), on the date and at the time specified in the notice.

(3) In addition to the accounts and documents referred to in sub-rule (2), a dealer if so desires, may produce such other evidence and documents in support of his claim preferred in his returns, or rebut the charges made in the Audit Visit Report, or any objection which he wishes to raise.

(4) The assessing authority, while hearing the dealer on the date specified in the notice referred to in sub-rule (1) or on any date to which the hearing is adjourned for making an assessment of tax payable by him, shall -

(a) examine the accounts, documents, records or any other evidence furnished under sub-rule(2);

(b) call for such information or evidence from the dealer or any person as deemed necessary;

(c) consider the objection, if any, preferred by such dealer and examine the evidence in support thereof; and

(d) make such enquiry, as deemed necessary, for the purpose of such assessment:

Provided that not more than three adjournments shall be granted to a dealer for hearing his case.

(5) The assessing authority shall, after hearing the dealer in the manner specified in sub-rules (2), (3) and (4), assess the tax due from that dealer accordingly, in respect of a tax period or tax periods, for which the assessment proceeding has been initiated, and impose penalty under sub-section(5) of section 9 C of the Act.

(6) In the event of default by a dealer to comply with the requirement of the notice referred to in sub-rule (1), the assessing authority may make to the best of judgment, an exparte assessment of the tax payable by such dealer in respect of such tax period or tax periods and pass an order of assessment, in writing, recording the reasons therein and shall impose penalty under sub-section (5) of section 9 C.