(1) Where a dealer has failed to deposit tax in accordance with the provisions of section 20 within the notified period or has failed to submit a return in accordance with the provisions of section 21, or an audit report in accordance with the provisions of section 73, within the prescribed period, the assessing authority or the officer authorized by the Commissioner shall, without prejudice to the penal provisions in this Act, after making such enquiry as it may consider necessary and after giving the dealer a reasonable opportunity of being heard, assess tax for that period to the best of his judgment.

(2) The tax assessed in sub-section (1), after adjustment of input tax credit and the amount deposited in advance in this behalf, if any, shall be payable by the dealer within thirty days from the date of service of the notice of demand. However, the assessing authority or the officer authorized by the Commissioner, after recording reasons in writing, may reduce such period.

(3) The tax deposited under sub-section (2) shall be adjusted in the assessment for the relevant period.

(4) No order under this section shall be passed after the last date of submission of annual return for that year.