(1) There shall be an assessment of taxable turnover, amount of tax payable on such turnover, and amount of input tax credit admissible to a dealer for each assessment year or where the dealer has carried on his business for a part of an assessment year, for such part of assessment year during which the dealer has carried on business.

(2) Every dealer shall, for the assessment year, submit to the assessing authority in addition to periodical returns, an annual return of his turnover and the amount of tax due from him, complete in all material particulars, in the prescribed form and manner, including electronic methods, within the prescribed time, containing such information, particulars and annexure as may be prescribed, accompanied by supporting documents, including.

(a) Particulars of turnover of purchase, sale and other transactions and value of opening and closing stocks;

(b) Computation of his own final assessment of amount of tax due from him on the basis of such return including claim for input tax credit;

(c) Such declarations, certificates, and such other evidences on which the dealer relies in support of his claim of exemption, concession or rebate of tax declared in "the computation of his own final assessment of amount of tax due from him;

(d) Proof of payment of the additional tax, interest, composition, money or fee due as per computation of his own assessment;

(e) Proof of tax or part thereof, if any, claimed to have been deducted at source (TDS).

(f) Proof of payment of late fee as may be prescribed in case such return is not filed within the prescribed time;

(g) a true copy of the audit report as required under Section 62 of the Act and

(h) such other particulars, information, documents and statements as may be prescribed.

An annual return shall not be treated as such if it is not complete in all material particulars, is not filed in the prescribed form and manner, does not contain such information, particulars and annexures as may be prescribed or does not comply with the requirements of this sub-section. The date, on which the annual return as contemplated above is submitted, shall be treated as the date of its submission;

Provided that every dealer required to furnish annual return shall be liable to pay such late fee not exceeding rupees 2000/- for each month or part thereof, of delay in furnishing annual return, as may be prescribed, and pay before furnishing such return the full amount of tax, interest and late fee, if any, payable according to such return in the manner, as may be prescribed.

(3) Deemed Assessment:

Subject to the provisions of sub-section (4) and sub-section (9) of this Section, every dealer, excluding works contractors who have not opted for composition under the provisions of sub-section (2) of Section 7, shall be deemed to have been assessed to tax, based on annual return filled by him as provided in sub-section (2) of Section 25, provided that it is filed within the prescribed time or if filed late, but not beyond 30^th June of the succeeding assessment year, along with the proof of the payment of late fee, if any.

(4) Notwithstanding anything contained in this section, from among the dealers who are deemed to have been assessed under sub section (3), a dealer or dealers may be selected for assessment under sub-section (6) and sub-section (7). Selection of such dealer/s shall be made after scrutiny. Selection of dealer/s for scrutiny and thereafter selection for assessment, for an assessment year, shall be made in the manner as may be prescribed by the Commissioner.

(5) For the purposes of this Act and the rules made there under-

(a) the annual return, referred to in sub-section (2) of Section 25 of in sub-section (13) of Section 23, filed by the dealer, shall be deemed to be the assessment order and the facts disclosed and the figures mentioned in such return shall be deemed to be part of such assessment order; and

(b) the last date, prescribed for submission of annual return or the actual date, on which such return is filed along with the prescribed late fee, if any, whichever is later, shall be deemed to be the date of such assessment order.

(6) Notwithstanding anything contained in this section, to assess a dealer who has not been deemed assessed under sub-section (3) or who has been selected for assessment under sub-section (4), the assessing authority shall serve on such dealer, a notice requiring him to appear on a date and at a place specified therein, to attend and submit periodical returns and annual return of his turnover, if not filed earlier, along with the proof of payment of late fee, if any, and to produce or cause to be produced the books of accounts and all evidence on which the dealer relies in support of his returns including sale and purchase invoices, or to produce such evidence as may be specified in the notice.

Explanation: Opportunity given under this Sub-section for submission of periodical returns and annual return shall not prevent the Assessing Authority from imposing penalties, interest or late fee, if any, under any other provisions of the Act, for not filling such returns within the time prescribed.

(7) If the dealer complies with the notice issued under sub-section (6) and the assessing authority after examining periodical returns, the annual return, books of accounts and documents and after considering all the evidences produced in the course of proceedings or the evidences collected or received by the assessing authority and after making such enquiry, as he may deem fit.

(a) is satisfied that turnover of Sales and purchases disclosed and amount of tax shown as payable by the dealer in the annual return is correct, assess the dealer to tax in accordance with the provisions of the Act, by an order in writing.

(b) if the assessing authority is of the opinion that the turnover or the liability of the tax disclosed by the dealer and the amount of tax paid by the dealer does not appear to be correct shall give him reasonable opportunity of being heard by giving him a show cause notice stating the reason, for non acceptance of the turnover of sales or purchase or liability of tax as disclosed by the dealer, and after considering the reply submitted by the dealer;

(i) if he is satisfied that the turnover disclosed by the dealer in the annual return is correct, shall assess the dealer to tax by an order in writing according to the provisions of the Act.

(ii) if he is not satisfied with the reply submitted by the dealer, shall determine the turnover to the best of his judgment and the tax payable thereon according to the provisions of the Act, by an order in writing;

Provided that where the opportunity under sub-section (6) for submission of periodical returns and annual return along with the proof of deposit of late fee and production of books, accounts and documents and evidences on which the dealer relies in support of his returns including sale invoices, or for production of such evidences as may be specified in the notice has been afforded to the dealer but for any reason he has not availed such opportunity and thereby the assessing authority could not examine the correctness and propriety of particulars shown in such returns, it shall not be necessary to issue show cause notice to such dealer before making an assessment order to the best of his judgment;

Provided further that, no assessment order under this sub-section shall be passed after the time limit as prescribed in section 32 of the Act.

(8) Any provisional assessment order in respect of any tax period under Section 24 shall not prevent the assessing authority to make final assessment and the provisional assessment order shall merged in the final assessment order passed under this Section.

(9) Tax Audit And Tax Audit Assessment:

(a) Notwithstanding anything contained in this Act tax audit of records, Stock and related documents of a dealer, selected for this purpose may be conducted for the purpose of ensuring the compliance by the dealer for the requirements of the Act or for examining the correctness of periodical and final returns and admissibility of various claims including input tax credits;

Provided that no dealer may be selected for tax audit for an assessment year after the expiration of five year from the end of such assessment year.

(b) Tax audit may be conducted by an officer, posted in the tax audit wing or by any other officer authorized for this purpose by the commissioner;

(c) The selection of dealer or dealers for the purpose of tax audit shall be in the manner as may be prescribed by the Commissioner;

(d) Tax audit may be taken up in the office, business premises or warehouse of the dealer. However, the officer conducting, audit may, if he deems fit, require the dealer either to attend and produce or cause to be produced the books of accounts and other documents in his office or any other place which may be specified in the notice,

If in Compliance of the notice served in this sub-section, the dealer does not attend the office of the officer in charge of tax audit or any other place which may be specified in the notice; or if attends does not produce or cause to be produced the books of accounts and other documents, the officer in charge of tax audit may impose a penalty of upto Rs. 5000/- for each non compliance of the notice. No such penalty shall be imposed without giving the dealer a reasonable opportunity of being heard. The provisions relating to recovery of dues shall mutatis mutandis apply for recovery of imposed penalty;

(e) The officer conducting the tax audit shall have powers under section 42 of the Act and may also make or cause to be made extracts or copies from the books of accounts and other documents, inventory of stock, seek such information or statement, which may be useful and relevant to any proceeding under this Act. The dealer shall provide full co-operation and assistance to the audit party during the course of audit;

If the dealer prevents or obstructs the officer from making extracts or copies from the books of accounts and other documents, inventory of stock or from seeking such information or statements required for the purpose of tax audit or does not cooperate and assist the audit party during the course of audit, the officer in charge of the tax audit may impose a penalty upto Rs. 10,000/ for each non compliance. No such penalty shall be imposed unless a reasonable opportunity of being heard has been given to the dealer. The provisions relating to recovery of dues shall mutatis mutandis apply for recovery of imposed penalty;

(f) The tax audit authority shall after considering all the evidence collected by him or produced in course of the proceeding may :-

(1) Confirm the self assessment or assessment order which has already been passed; or

(2) Set aside the self assessment or assessment or reassessment order and reassess the turnover and tax of the dealer; or

(3) Assess the amount of tax due from the dealer if no assessment has been made so far;

Provided that no such assessment or reassessment shall be made unless a reasonable opportunity of being heard has been given to the dealer;

Provided further that not more than three adjournments shall be granted to a dealer for hearing of the case under this Section;

Provided further that period of limitation for making Assessment or Reassessment under this section shall be applicable as per section 32 of this Act.

(g) The tax audit officers shall have all the powers of an Assessing Authority.;

(10) In case of the following dealers or class of dealers in respect of different transactions more than one assessment may be made for the same assessment year and will be treated as part of one assessment year-

(a) dealer who has obtained more than one authorized for transit of goods through the State; in respect of each authorization for transit of goods to the State;

(b) casual dealer who has no fixed place of business, by different assessing authorities in whose jurisdiction he has carried on business;

(c) unregistered dealer who imports taxable goods on each occasion, he imports the goods;

(d) unregistered dealer who either executes works contracts or effects transfer of right to use any goods, for any purpose in jurisdiction of more than one assessing authorities and has no fixed place of business, by each assessing authority in respect of business carried out in his jurisdiction;

Provided that more than one assessment shall not be made in respect of the same turnover of sales or the same turnover of purchase.

(11) Where during the course of an assessment year the rate of tax on the turnover of any goods or class of goods is varied or an exemption in respect thereof is granted or cancelled the assessment, so far as it relates to the portion of such turnover for the period after the date of variation, exemption or cancellation shall be made on the basis of the rate so varied or the exemption so granted or cancelled.

(12) Any assessment made under this section shall be without prejudice to any penalty imposed under the Act.