(1) On receipt of the Audit Visit Report, the assessing authority, shall serve a notice in Form VAT-306, upon such dealer, directing him to appear in person or through his authorized representative on such date, time and place, as specified in the said notice for compliance of the requirements of sub-rules (2) and (3).

(2) The assessing authority may, in the notice referred to in sub-rule (1), require the dealer-

(a) to produce the books of account maintained under the provisions of the Act and these rules;

(b) to furnish records and documents required to be maintained under the Act and these rules claiming exemption or concession in the payment of input tax, output tax and input tax credit, as may be applicable;

(c) to furnish any other information relating to assessment of tax, levy of interest, imposition of penalty, and

(d) to explain the books of account, other accounts, records, documents or information referred to in clauses (a), (b) and (c),

on the date and at the time specified in the notice.

(3) In addition to the accounts and documents referred to in sub-rule (2), a dealer, if so desires, may produce such other evidence and document in support of his claim preferred in his returns or any objection he wishes to raise.

(4) The assessing authority, while hearing the dealer on the date specified in the notice referred to in sub-rule (1) or on any date to which the hearing is adjourned, for making an assessment of tax payable by him, shall-

(a) consider the objection, if any, preferred by such dealer and examine the evidence in support thereof; and

(b) examine the accounts, documents, records or any other evidence furnished under sub-rule (2):

Provided that not more than three adjournments shall be granted to a dealer for hearing his case.

(5) In course of hearing of the assessment proceeding, the assessing authority may, -

(a) examine such records, registers or documents, which are required to be maintained by the dealer under the Act and the rules; or

(b) call for such information or evidence from the dealer or any person as deemed necessary; or

(c) make such enquiry, as is deemed necessary, for the purpose of such assessment.

(6) The assessing authority shall, after hearing the dealer in the manner specified in sub-rules (2), (3), (4) and (5), assess to the best of judgment, the amount of tax payable by a dealer in respect of a tax period or tax periods for which the assessment proceeding has been initiated, and impose penalty under sub-section (5) of section 42.

(7) In the event of default by a dealer to comply with the requirement of the notice referred to in sub-rule (1), the assessing authority may make to the best of judgment, an exparte assessment of the tax payable by such dealer in respect of such tax period or tax periods and pass an order of assessment, in writing, recording the reasons therein.