(1) Every dealer liable to pay tax under this Act shall furnish in the prescribed form a return of his turnover for a year within one hundred and twenty days from the expiry of that year.

(2) Without prejudice to the provisions of sub-section (1), every dealer as aforesaid shall also furnish in the prescribed form quarterly returns for each quarter of the year within thirty days from the expiry of that quarter. Every such return shall be accompanied by a Treasury Receipt or any other proof of having paid the tax due on that return.

(3) Every dealer, other than a registered dealer, who may be required so to do by the Assessing Authority by notice served in the prescribed manner, shall furnish such returns by such dates as may be fixed by the said Authority:

Provided that the Commissioner may, subject to such conditions and restrictions as may be prescribed, exempt any such dealer or class of dealers from furnishing such returns or permit any such dealer-

(a) to furnish them for such different periods; or

(b) to furnish a consolidated return to all or any of the places of business of the dealer in the state for said period or for such different periods and to such authority, as he may direct.

(4) If any dealer discovers any omission or other error in any return furnished by him he may furnish a revised return at any time before the date prescribed for the furnishing of the next return, and if the revised return shows a greater amount of tax to be due than was shown in the original return, it shall be accompanied by treasury receipt or any other proof of payment of such extra tax, if any, payable.

(5) If the Assessing Authority is satisfied that a dealer has for a reasonable cause been unable to furnish any return within the prescribed period the said Authority may extend the period for submission of such return.

(6) If the Assessing Authority is satisfied that the return submitted under sub-section (1) or sub-section (3) is correct and complete, he shall assess the amount of tax due from the dealer on the basis of such return.

(7) If the Assessing Authority is not satisfied that the annual return furnished under sub-section (1) and sub-section (3) is correct and complete, he shall serve on the dealer a notice in the prescribed form requiring him on a date and at a place specified therein either to attend in person or to produce or cause to be produced any evidence on which such dealer may rely in support of such return.

(8) On the day specified in the notice or as soon afterwards as may be, the Assessing Authority shall after recording such evidence as the dealer may produce and such other evidence as the Assessing Authority may require on specified point, assess the amount of tax due from the dealer.

(9) If a dealer fails to comply with the term of a notice issued under sub-section (7) the Assessing Authority shall proceed to assess to the best of his judgement, the amount of tax, if any, due from the dealer.

(10) If no return is submitted by the dealer under sub-section (1) or sub-section (3) before the date prescribed or specified in that behalf, the Assessing Authority shall proceed to assess to the best of his judgement, the amount of tax, if any, due from the dealer.

(11)(a) If the Assessing Authority has reasons to believe that by reasons of omission or failure on the part of a dealer to make a return under sub-section (1) or sub-section (3) for any year, to the Assessing Authority or to disclose fully and truly all material facts necessary for his assessment for that year, the turnover chargeable to tax has escaped assessment or has been assessed at lower rate for that year in whole or in part; or

(b) If there has been no omission or failure as mentioned under clause (a) on the part of the dealer, the Assessing Authority has in consequence of information in his possession or otherwise reasons to believe that the turnover chargeable to tax has escaped assessment or has been assessed at a lower rate for any year in whole or in part;

The Assessing Authority may subject to the provisions of sub-sections (12) and (13) assess or re-assess the dealer to tax in whole or in part, as the case may be, on such turnover.

(12) Before making the assessment or re-assessment under sub-section (11), the Assessing Authority shall serve on the dealer a notice in the prescribed form containing grounds for such proceeding.

(13) No notice under sub-section (12) shall be issued if eight years have elapsed from the end of that year to which it relates.

(14)(a) No order of assessment under sub-sections (6), (8), (9) and (10) of this section shall be made after the expiry of four years from the end of the year or after expiry of one year from the end of the year in which the return or revised return under sub-section (1), (3) or (4) of this section is filed, whichever is later;

(b) no order of assessment or re-assessment under sub-section (11) of this section shall be made after the expiry of eight years from the end of the year or one year from the end of the year in which the notice is served, whichever is later.

(15) Notwithstanding anything contained in sub-section (14) of this section an order of fresh assessment in pursuance of an order under section 11, 11-A or 12, or an order of Court may be made before the expiry of 2 years from the end of the financial year in which such order is passed.

(16) Where the assessment or re-assessment proceedings are stayed under the order of any Court or other competent authority for any period, such period shall be excluded in computing the period of limitation for such assessment or re-assessment specified in sub-section (14), (15) or any other provisions of this Act.

(17) A certified copy of order of assessment/re-assessment determining the taxable turnover assessed shall be issued to the assessee along with the notice of demand.

(18)(a) Notwithstanding anything contained in this section the Assessing Authority may make a provisional assessment and demand tax payable on the basis of such assessment in respect of any quarter (s) in the following circumstances:-

(i) when a dealer fails to furnish a quarterly return and the quarterly tax cannot be determined in accordance with sub-section (5) of section 8 of this Act; or

(ii) when a dealer discontinues business during the currency of accounting year itself; or

(iii) when the assessing authority has reasons to believe that the delay in making assessment shall be prejudicial to the interests of revenue.

(b) The provisions of this Act relating to recovery, interest, penalty etc. shall mutatis mutandis, apply to the provisional assessment made under clause (a).

(19) Notwithstanding anything to the contrary contained in this section, the Government may prescribe a scheme of deemed assessment, subject to such restrictions and conditions as it may impose, in respect of dealers whose assessment, are pending for any period upto 31st March, 2005.