(1) The assessment of every registered dealer shall be made separately for every year .

Provided that,-

(a) the Commissioner, may, subject to such conditions and restrictions as may be prescribed assess the tax due from any dealer for any part of a year;

(b) a registered dealer who claims a refund of input tax rebate under the provisions of sub-section (4) of Section 13,-

(i) in his return for any quarter of a year and makes an application for that purpose, along with such return or before the date on which the return for the subsequent quarter becomes due, or

(ii) in his returns for a year and makes an application for that purpose before the date on which the return for the first quarter of the subsequent year becomes due,

the assessment of such dealer for that quarter or year, as the case may be, shall be made in accordance with the provisions of sub-section (4) within a period of three months from the date of receipt of the application.

(2) Where a registered dealer other than the registered dealer referred to in the proviso to sub-section (1) has furnished,-

(i) all the returns for a year and/ or

(ii) revised return for any quarter or quarters of such year, in the prescribed manner and within the prescribed time or before the date on which the return for the first quarter of the subsequent year becomes due;

(iii) has paid the tax payable according to such returns or revised returns as also interest payable, if any; and

(iv) has furnished the statement under clause (b) of sub- section (1) of Section 19, within the prescribed time,

the returns furnished or revised returns furnished by such dealer for that year shall be accepted and his assessment shall be deemed to have been made for the purpose of sub-section (1) .

Provided that the assessment under this sub-section of every such registered dealer who is required to furnish audit report under sub-section (2) of Section 41 shall be deemed to have been made if such dealer has furnished the audit report along with the statement referred to in sub-clause (iv).

(3) Notwithstanding the provisions of sub-section (2), the Commissioner shall select for re-assessment a number of such dealers as he deems fit whose assessment for a year is deemed to have been made under sub-section (1) in accordance with the provisions of sub-section (2) and such selection shall be made within three calendar year from the said year.

(4)(a) The Commissioner shall serve on a registered dealer referred to in the proviso to sub-section (1) or in sub-section (3) or a registered dealer who is not eligible for assessment under sub-section (2) with a notice in the prescribed form appointing a place and day and directing him,-

(i) to appear in person or by an agent entitled to appear in accordance with the provisions of Section 24; or

(ii) to produce evidence or have it produced in support of the returns; or

(iii) to produce or cause to be produced accounts, registers, cash memoranda or other documents relating to his business;

(b) The Commissioner, after hearing the registered dealer or his agent and examining the evidence produced in compliance with the requirements of sub-clause (ii) or sub-clause (iii) of clause (a) and such further evidence as he may require, shall assess or re-assess him to tax.

(5) If a registered dealer referred to in clause (a) of sub-section (4),-

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

(b) has knowingly furnished incomplete or incorrect returns or statement for any period; or

(c) having furnished such returns has failed to comply with any of the terms of a notice issued under clause (a) of sub-section (4); or

(d)(i) has not maintained any accounts, or

(ii) the accounts maintained by him are not in accordance with the provisions of sub-section (1) of Section 41, or

(iii) has not regularly employed any method of accounting, or

(iv) the method employed is such that in the opinion of the Commissioner assessment cannot properly be made on the basis thereof,

the Commissioner shall, after issue of a notice in the prescribed form and in the prescribed manner, assess the dealer to the best of his judgment.

(6)(a) If upon any information which has come into his possession, the Commissioner is satisfied that any dealer, being liable to pay tax in respect of any period has failed to apply for registration, the Commissioner shall within one calendar year from the date of completion of the proceedings under sub-section (1) of Section 5 proceed, in such manner as may be prescribed, to assess such dealer and assess him to tax to the best of his judgment in respect of the whole of such period and shall impose upon him, by way of penalty, a sum two times of the amount of tax so assessed.

(b) In respect of periods, subsequent to the period referred to in clause (a), during which the dealer has failed to apply for registration, the amount of tax due from him referred to in the said clause shall be assessed separately for each year.

(7)(i) the assessment in respect of a registered dealer referred to in clause (a) of sub-section (4) shall be made within a period of two calendar year from the end of the period for which the assessment is to be made;

(ii) the assessment in respect of a dealer referred to in clause (b) of sub-section (6) for any period shall be made within a period of two calendar year from the end of such period; and

(iii) in respect of a dealer, under clause (a) of sub-section (6) shall be made within a period of one calendar year from the commencement of proceedings under the said sub-section .

Provided that -

(a) Where a fresh assessment has to be made to give effect to any finding or direction contained in any order under Section 48, 49, and 55 or to any order or judgment of the Civil Court, High Court, Supreme Court, such assessment shall be made within one calendar year :

(i) from the date of order under Section 48, 49, and 55 containing any finding or direction, and

(ii) from the date of initiation of assessment / re-assessment proceeding in pursuance to the order, or judgment of Civil Court, High Court or Supreme Court, and

(b) where an order of ex parte assessment of a registered dealer referred to in clause (a) of sub-section (4) is set aside and case reopened under Section 36 for making a fresh assessment, such fresh assessment shall be made within a period of six calendar months from the date of setting aside the ex parte order of assessment or within the period laid down in clause (i) whichever is later; and

(c) nothing contained in this sub-section shall apply to proceedings initiated under Section 22 or any proceeding other than assessment or re-assessment of tax that may be instituted under any other provisions of this Act.

(8) Notwithstanding anything contained in sub-section (7), where assessment or re-assessment proceedings in respect of any dealer relating to any period cannot be completed before the expiry of the period specified herefore in the said sub-section, the State Government, may by notification, for reasons to be recorded in writing, extend the period for the completion of such assessment proceedings in respect of such dealers by such further period as may be specified in such notification.

(9)(a) where, a registered dealer claims refund of tax or input tax rebate in his return for any quarter or return or returns for any year and makes an application for his assessment for that quarter or that year but his assessment is not completed within the time specified in the proviso to sub-section (1), the claim made in the return or returns for that quarter or year shall stand accepted and such dealer shall be entitled to the refund of the amount of the tax or input tax rebate;

(b) where the assessment for any year of a registered dealer,-

(i) other than a registered dealer referred to in the proviso to sub-section (1), and

(ii) a registered dealer who has not furnished any return or returns for that year, is to be made under the provisions of sub-section (4) or sub-section (5) is not made within the time provided in sub-section (7) or within the time extended under sub-section (8), then,-

(a) the returns furnished by the registered dealer in (i) above shall stand accepted and he shall be deemed to have been assessed for the purpose of the Act;

(b) the assessment of the registered dealer in (ii) above shall become time-barred.