(1) Where a dealer required to furnish return for a period under sub-section (1) of section 32,-

(a) fails to furnish such return; or

(b) furnishes such return but fails to make an application to the Commissioner for extension of date of payment, of the unpaid amount of net tax and interest if any, as referred to in the first proviso to sub-section(2) of section 32; or

(c) furnishes such return but fails to make payment of net tax or interest thereon in accordance with the terms and conditions and within such time as may be specified by the Commissioner as referred to in the first proviso to sub-section (2) of section 32; or

(d) furnishes such return but fails to make payment of the unpaid amount of net tax or interest and where the Commissioner has rejected his application for extension of date of payment as referred to in the first proviso to sub-section (2) of section 32,

the Commissioner or any other person appointed under sub-section (1) of section 6 to assist him, may, notwithstanding anything contained in section 46, proceed to assess the dealer provisionally for that period:

Provided that no provisional assessment under this section in respect of a return period shall be made following the expiry of six months from the prescribed date for furnishing such return or the extended date for making payment of net tax, as the case may be:

Provided further that in computing the time limit as specified in the first proviso for making any provisional assessment under this section, the period during which the Commissioner is restrained from commencing or continuing any proceedings from such provisional assessment by an order of a tribunal or any court, shall be excluded.

(2) The Commissioner or other authority as referred to in sub-section (1), shall assess the dealer on the basis of past returns, or past records, and where no such returns or records are available, on the basis of information received by the Commissioner and where the dealer fails to pay the net tax for any tax period within the date extended by the Commissioner, shall impose a penalty not exceeding twice the amount of tax so assessed and direct the dealer by a notice to pay the amount of tax assessed, interest determined and penalty imposed in such manner and within such date as may be prescribed.

(3) Notwithstanding anything contained elsewhere in this section, if the dealer produces documentary evidence for furnishing return and receipted copy of challan showing full payment of net tax and interest, if any, on or before the date fixed under sub-section (2) for such purpose, the said authority shall close the proceeding initiated under this section.

(4) If the dealer furnishes receipted challans showing full payment of net tax and interest payable according to such demand notice and fifty per centum of penalty demanded in such notice served under sub-section (2), on or before the date of payment mentioned in such notice, the provisional assessment shall stand revoked to the extent of demand of net tax, interest and balance fifty per centum of penalty.

(5) Nothing contained in this section shall prevent the Commissioner from making assessment under section 46 and any net tax or interest paid, and penalty paid in excess of the fifty per centum of the amount of penalty imposed against provisional assessment or assessments, as the case may be, shall be adjusted against net tax and interest payable on assessment made under that section.