(1) The Commissioner or any other authority as may be authorised by the Commissioner, may, on the basis of information received or of cases as referred to in sub-rule (2) or otherwise, select certain dealers for the purpose of special audit under section 43A of accounts, records and documents including physical verification of goods held in stock by such dealers.

(2) The special audit may include cases of dealers-

(a) showing disproportionately high stock of goods at the end of any period compared to its turnover of sales during that period; or

(b) carrying forward huge net tax credit from one period to the other; or

(c) showing increase in the volume of purchase without the matching increase in sales; or

(d) who on any occasion within two preceding years was found to have made fictitious purchase to claim input tax credit; or

(e) who on any occasion within two preceding years was found to have issued tax invoice to a registered dealer without maintaining proper proof in respect of transportation and delivery of the goods; or

(f) who engaged in the business of manufacture of iron and steel and also its resale, with cross utilization of input tax credit of one with the other and vice versa.

(3) The special audit may be made for a part of a period, a period, or aggregate of periods and may be performed by any assessing authority or auditing authority or any other similar authority as may be authorised by the Commissioner:

Provided that more than one special audit may be made to a dealer in respect of the same period and subject to different grounds.

(4) Any officer as referred to in sub-rule (3) conducting the special audit, may, wherever necessary, take the assistance of the Assistant Sales Tax Officer for any purpose relating to such audit of the dealer.

(5) The provisions of sub-rule (7), sub-rule (7 A) and sub-rule (7B) of rule 54, so far not inconsistent with the provisions of section 43A and this rule, shall, mutatis mutandis, apply in respect of the audit of dealers under the said section.