36. Audit assessment.-

(1) Where

(a) a registered dealer has failed to furnish any return under sub-section (1) of Section 28 in respect of any period; or

(b) a registered dealer is selected for audit assessment by the Commissioner on the basis of any criteria or on random basis; or

(c) the Commissioner is not satisfied with the correctness of any return filed under Section 28; or bona fides of any claim of exemption, deduction, concession, input tax credit or genuineness of any declaration, evidence furnished by a registered dealer in support thereof; or

(d) the Commissioner has reason to believe that detailed scrutiny of the case is necessary, the Commissioner may, notwithstanding the fact that the dealer may already have been assessed under Section 35, serve on such dealer in the prescribed manner a notice requiring him to appear on a date and place specified therein, which may be in the business premises or at a place specified in the notice, to either 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 tax invoice, if any, or to produce such evidence as specified in the notice.

(2) The dealer shall provide full cooperation and assistance to the Commissioner to conduct the proceedings under this Section at his business premises.

(3) If proceedings under this Section are to be conducted at the business premises of the dealer and it is found that the dealer or his authorized representative is not available or not functioning from such premises, the Commissioner shall assess to the best of his judgment the amount of tax due from him.

(4) If the Commissioner is prevented from conducting the proceedings under this Section, the Commissioner may demand, a sum not exceeding three hundred percent of the amount of tax so assessed, by way of penalty.

(5) The Commissioner shall, after considering all the evidence produced in course of the proceedings or collected by him; or

(6) If any dealer-

(a) Has not furnished returns in respect of any period by the prescribed date; or

(b) Has furnished incomplete and incorrect returns for any period; or

(c) Has failed to comply with any notice under sub-section (1) or sub-section (3); or

(d) Has failed to maintain accounts in accordance with the provisions of this Act or has not regularly employed any method of accounting, the Commissioner shall assess to the best of his judgment the amount of tax due from such dealer.

(7) If the Commissioner is satisfied that the dealer, in order to evade or avoid payment of tax -

(a) Has failed to furnish without reasonable cause, returns in respect of any period by the prescribed date; or

(b) Has furnished incomplete and incorrect returns for any period; or

(c) Has availed tax credit to which he is not entitled to; or

(d) Has employed such method of accounting which does not enable the Commissioner to assess the tax due from him; he shall, after giving the dealer reasonable opportunity of being heard, direct that the dealer shall pay, by way of penalty, a sum equal to three times of the amount of additional tax assessed on account of the said reasons under this Section.