(1) There shall be an assessment of turnover of taxable sales, amount of tax payable on such turnover, turnover of taxable purchases and amount of input tax credit admissible to a dealer for each assessment year or where the dealer has carried on his business for a part of an assessment year, for such part of assessment year during which the dealer has carried on business.

(2) Every dealer shall submit to the assessing authority in addition to the returns for the tax period filed, an annual return of his turnover for the assessment year in the prescribed form, containing such particulars and accompanied by supporting documents, including

(a) particulars of turnover of purchase, sale and other transactions and value of opening and closing stocks;

(b) such declaration, certificates, and such other evidence on which such dealer relies in support of his returns;

(c) computation of his own assessment of amount of tax due from him on the basis of such returns including claim for input tax credit;

(d) proof of payment of the additional tax admitted as due and interest due as per his own calculation; and

(e) such other particulars, documents and statements as may be prescribed.

(3) The returns furnished by a dealer shall be duly acknowledged in the manner prescribed. The cases remaining after the scrutiny under the provisions of sub-section (4) shall be taken up for self assessment and in respect of such cases where all the returns including the annul return relating to an assessment year have been filed and are correct and complete in material particulars, the dealer shall, be deemed to have been self-assessed for that year and the acknowledgement of the annual return shall be deemed to be the copy of assessment order:

Provided that where the returns are not complete in material particulars, the dealer shall be given an opportunity to complete them, and the assessing authority shall, after the required documents have been furnished to him and/or arithmetical mistake, if any, has been corrected and tax due, if any, as a result thereof has been paid, pass an order in the matter.

Explanation:- A return is complete in material particulars if it contains the information required to be furnished therein, is correct arithmetically, accompanied with the statutory lists, documents and proof of payment of tax due and the supporting declarations, certificates, or evidence required under this Act or the Central Sales Tax Act, 1956 in respect of amount of deductions (including deduction on the basis of input tax credit), exemptions and any other concessions or rebates claimed by the dealer in the returns are furnished.

(4) Notwithstanding any thing contained in sub-section (3) above, the cases of the following categories shall be subjected to regular assessment after scrutiny-

(a) cases in which the gross turnover exceeds five crore rupees in a financial year;

(b) cases in which the claim of input tax credit exceeds one lakh rupees in a year;

(c) cases in which the claim of refund exceeds one lakh rupees in a year;

(d) cases based on definite intelligence about evasion of tax;

(e) cases selected to a maximum of 20% on the basis of any criteria or on random basis from amongst the cases covered under the provisions of sub-section (3) and sub-section (4) for self assessment:

Provided that the State Government may, by notification in the Official Gazette, change the criteria for selection of cases for scrutiny.

(5) Save the cases covered under the provisions of sub-section (3) and sub-section (4) for self assessment, in rest of the cases the assessing authority shall, notwithstanding the fact that the dealer may already have been provisionally assessed under section 24, serve on such dealer in the prescribed manner a notice requiring him to appear on a date and place specified therein, to attend and produce or cause to be produced the books of account and all evidence on which the dealer relies in support of his returns including Sale invoice, or to produce such evidence as may be specified in the notice:

Provided that such notice shall be served on the dealer before the expiry of one year from the last date prescribed for filing the annul return relating to the assessment year or the actual date when the return has been filed, whichever is later, and after the notice has been served the case may be disposed of within three years from the close of the year to which the assessment relates.

(6) The assessing authority shall, after examination of returns, books of accounts and documents and after considering all the evidences produced in the course of proceedings including tax audit proceedings under sub-section (8) or collected by him otherwise and after making such enquiry, as it may deem fit, shall-

(a) If he is satisfied that turnover of sales and, or of purchases disclosed and amount of tax shown payable by the dealer in annual return is correct, assess the dealer to tax in accordance with the provisions of the Act, by an order in writing, on the turnover admitted by the dealer; and

(b) If he is of the opinion that the turnover disclosed and the amount of tax paid by the dealer does not appear to be correct, cause a notice to be served on the dealer, stating the reason, for non acceptance of the turnover of sales or purchases or both, as disclosed by him and shall give him a reasonable opportunity of being heard and after considering the reply submitted by the dealer the assessing authority-

(i) if he is satisfied that the turnover disclosed by the dealer is correct, he shall assess the dealer, by an order in writing, to tax according to the provisions of this Act, on the turnover admitted by the dealer; or

(ii) if he is not satisfied with the reply submitted by the dealer he shall determine the turnover to the best of his judgment and tax payable thereon according to the provisions of this Act, by an order in writing.

Provided that where the opportunity for production of books, accounts and documents has been afforded to the dealer but for any reason he has not availed such opportunity and thereby the assessing authority could not examine the correctness and propriety of particulars shown in the returns, it shall not be necessary to issue show cause notice to such dealer before making an assessment order to the best of his judgment.

Provided further that no order under this sub-section shall be passed after the expiry of three years from the close of the year to which the assessment relates.

(7) Any provisional assessment order in respect of any tax period under section 24 shall not prevent the assessing authority to make final assessment and the provisional assessment order shall stand merged in the final assessment order passed under this section.

(8) Tax Audit :

(a) Notwithstanding that the assessment of a dealer for any year is pending or he has been assessed or re-assessed under the provisions of this Act for any assessment year or its part, tax audit of records, stock in trade or related documents of the dealer may be conducted for the purpose to ensure compliance by the dealer with the requirements of the Act.

(b) The tax audit may be conducted by officer(s) posted in the Tax Audit Wing or by other officer(s) of the department including assessing officers so authorised by the Commissioner or by an officer of the Tax Audit Wing not below the rank of an Additional Commissioner.

(c) For the purpose of tax audit under clause (a) the officer(s) authorised shall examine the correctness of the return of returns filed and admissibility of various claims including input tax credit.

(d) The selction of dealers for the purpose of tax audit shall be in the manner as may be prescribed.

(e) The tax audit may be taken up in the office, business premises or warehouse of the dealer. However, the officer conducting audit may, if he deems it necessary, require the dealer to either attend and produce or cause to be produced the books of accounts and other documents in his office or any other place which may be specified in the notice in the prescribed manner.

(f) The Officer(s) conducting the tax audit shall have powers under Section 42 of the Act and may make or cause to be made extracts or copies from books of accounts and other documents, make inventory of stock, seek such information or statement, which may be useful and relevant to any proceeding under this Act.

(g) The dealer shall provide full cooperation and assistance to the Audit party during the course of audit.

(h) After the completion of the tax audit the audit report shall be sent to the assessing authority and also to the dealer within 15 days of the tax audit.

(i) The Assessing authority on the basis of the audit report shall initiate necessary proceedings as per the provisions of the Act.

(9) In cases of the following dealers or class of dealers in respect of different transactions more than one assessment may be made for the same assessment year and will be treated as part of one assessment year-

(a) dealer who has obtained more than one authorisation for transit of goods through the State; in respect of each authorisation for transit of goods to the State;

(b) casual trader who has no fixed place of business, by different assessing authorities in whose jurisdiction he has carried on business;

(c) unregistered dealer who imports taxable goods on each occasion, he imports goods;

(d) unregistered dealer who either executes works contracts or effects transfer of right to use any goods, for any purpose in jurisdiction of more than one assessing authorities and has no fixed place of business, by each assessing authority in respect of business done in his jurisdiction:

Provided that more than one assessment shall not be made in respect of the same turnover of sales or turnover of purchases.

(10) Where during the course of an assessment year the rate of tax on the turnover of any goods or class of goods is varied or an exemption in respect thereof is granted or cancelled the assessment, so far as it relates to the portion of such turnover for the period after the date of variation, exemption or cancellation shall be made on the basis of the rate so varied or the exemption so granted or cancelled.

(11) Any assessment made under this section shall be without prejudice to any penalty imposed under this Act