(1) Where a VAT dealer or TOT dealer fails to file a return in respect of any tax period within the prescribed time, the authority prescribed shall assess the dealer for the said period for such default in the manner prescribed.

(1A) Every VAT dealer, shall in such manner, as may be prescribed, furnish a Certificate of audit of the accounts for every financial year, by 31st day of December subsequent to the financial year to which the statements are related, along with other statements as may be prescribed duly certified by a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949 (Act No. 38 of 1949):

Provided that the VAT dealer, who fails to furnish the Certificate of audit of the accounts statements on or before the due date shall be liable to pay a penalty of Rs. 3,000/- for every day of delay from the due date till the date of submission.

(1B) every TOT dealer shall in such manner, as may be prescribed, furnish a Certificate of audit of the accounts for every financial year, by 31st day of December subsequent to the financial year to which the statements are related, along with other statements as may be prescribed duly certified by Sales Tax Practitioner with a standing of five years and possessing a Certificate of an Enrolment issued by the Commissioner:

Provided that the TOT dealer, who fails to furnish the Certificate of audit of the accounts statements on or before the due dale shall be liable to pay a penalty of Rs.750/- for every day of delay from the due date till the date of submission.

(2) If a VAT dealer or TOT dealer submits a return along with evidence for full payment of tax, subsequent to the prescribed time the assessment made under sub-section (1) may be withdrawn without prejudice to any interest or penalty leviable.

(3) Where the authority prescribed is not satisfied with a return filed by the VAT dealer or TOT dealer or the return appears to be incorrect or incomplete, he shall assess to the best of his judgement within four years of due date of the return or within four years of the date of filing of the return whichever is later.

(4) The authority prescribed may, based on any information available or on any other basis, conduct a detailed scrutiny of the accounts of any dealer and where any assessment as a result of such scrutiny becomes necessary, such assessment shall be made within a period of four years from the end of the period for which the assessment is to be made.

(5) Where any willful evasion of tax has been committed by a dealer, an assessment shall be made to the best of his judgement by the authority prescribed within a period of six years of date of filing of the return or the first return relating to such offence.

(6) The authority prescribed may reassess, where an assessment was already made under sub-sections (1) to (5) and such assessment understates the correct tax liability of the dealer, within a period of four years from the date of such assessment.

(7) Where any proceeding of assessment has been deferred or stayed by the Appellate Tribunal or by the High Court or by the Supreme Court for any reason, the period, during which such order of deferment or stay was in force, and also a further period of 90 days from the date of receipt of the orders, having the effect of vacation of such orders of deferment or stay, shall be excluded in computing the period of four years or six years, as the case may be, for the purpose of making any assessment under this section:

Provided that on vacation of the orders of deferment or stay, referred to in the section, the proceedings of such assessment shall recommence from the stage at which it was deferred or stayed.

(8) Where an assessment made has been set-aside by any Court, the period between the date of such assessment and the date on which it has been set-aside and a further period of 90 days shall be excluded in computing the period of four years or six years as the case may be, for making any fresh assessment.