(1) The returns furnished by a dealer shall be duly acknowledged in the manner prescribed and where all the returns relating to any year have been filed and are correct and complete in material particulars, the dealer shall, subject to the provisions of sub-section (2) in the manner prescribed, be deemed to have been assessed for that year:

Provided that where the returns are not complete in material particulars, the dealer shall be given an opportunity to complete the same within thirty days days of service of the notice.

(2) The State Government may prescribe the manner of selection of cases for scrutiny of returns filed by the dealers specified in sub-section (1) and the Assessing Authority shall, in respect of each selected case, serve on the dealer a notice in the prescribed manner requiring him, on a date and at a place specified therein, either to attend in person or to produce or cause to be produced any evidence on which such dealer may rely in support of the returns filed by him under sub-section (1) and after hearing the dealer and considering the evidence produced by him assess the amount of tax, if any, due from him.

(3) Notwithstanding anything contained in this Act, if the Government considers it necessary and expedient, in public interest so to do, it may in respect of a dealer, whose gross turnover in a year does not exceed such amount as the Government may specify, in a special scheme of self-assessment for any year which may be notified, under this Act:

Provided that in case any dealer, whose taxable turnover has been assessed under the self-assessment scheme, is found to have evaded the tax, the Assessing Authority shall, after affording such dealer a reasonable opportunity of being heard, direct him to pay by way of penalty, in addition to the amount of tax assessed, a sum which shall not be less than one hundred per centum but which shall not exceed one and a half times of the amount of tax found to have been evaded and assessed.

(4) The Assessing Authority shall serve on the dealer not covered under sub-section (1) a notice in the prescribed manner requiring him, on a date and at a place specified therein, either to attend in person or to produce or cause to be produced any evidence on which such dealer may rely in support of such returns and after hearing such evidence as the dealer may produce, and such other evidence as the Assessing Authority may require on specified points, assess the amount of tax due from the dealer.

(5) If a dealer, having furnished returns in respect of a period, fails to comply with the terms of a notice issued under sub-section (2) or (4), the Assessing Authority shall, within five years after the expiry of such period, proceed to assess to the best of his judgment the amount of the tax due from the dealer.

(6) If a dealer does not furnish returns in respect of any period by the prescribed date, the Assessing Authority shall, within five years after the expiry of such period, after giving the dealer a reasonable opportunity of being heard, proceed to assess, to the best of his judgment, the amount of tax, if any, due from the dealer.

(7) If upon information which has come into his possession, the Assessing Authority is satisfied that any dealer has been liable to pay tax under this Act in respect of any period but has failed to apply for registration, the Assessing Authority shall, within five years after the expiry of such period, after giving the dealer a reasonable opportunity of being heard, proceed to assess, to the best of his judgment, the amount of tax, if any, due from the dealer in respect of such period and all subsequent period and in cases where such dealer has wilfully failed to apply for registration, the Assessing Authority shall direct that the dealer shall pay by way of penalty, in addition to the amount of tax assessed, a sum upto double the amount of tax assessed but which shall not be less than one hundred percentum of the amount of tax so assessed.

(8) The amount of any tax, penalty or interest payable under this Act shall be paid by the dealer by such date as may be specified in the notice issued by the Assessing Authority for the purpose and the date so specified shall not be less than fifteen days and not more than thirty days from the date of service of such notice:

Provided that the Assessing Authority may, with the prior approval of the Assistant Excise and Taxation Commissioner or the Excise and Taxation Officer in-charge of the district, extend the date of such payment, but not more than 90 days, or allow payment by monthly instalments not exceeding three, against an adequate security or a bank guarantee.

(9) If the tax assessed under this Act or any instalment thereof is not paid by any dealer within the time specified therefor in the notice of assessment or in the order permitting payment in instalments, the Commissioner, or any person appointed to assist him under sub- section (1) of section 3, may after giving such dealer an opportunity of being heard, impose on him a penalty not exceeding the sum due from him but which shall not be less than one thousand rupees.

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