Assessment of tax

Assessment of tax

1. (1) If the prescribed authority is satisfied that the return furnished by an importer in respect of any period is correct and complete, he shall assess the amount of tax due from the importer on the basis of such return.
2. (2) If the prescribed authority has reason to believe that the return furnished by an importer is incorrect or incomplete, he shall serve on such importer a notice requiring him, on the date and at the hour and place specified therein, to attend or to produce or cause to be produced any evidence on which such importer may rely in support of his return.
3. (3) On the day specified in the notice or as soon as may be thereafter, the prescribed authority shall, after hearing such evidence as the importer may produce and such other evidence as the prescribed authority may require on specified points, assess or re-assess the amount of tax due from the importer.
4. (4) If an importer fails to comply with the requirements of the notice issued under sub-section (2), the prescribed authority shall assess or re-assess to the best of his judgment the amount of tax due from him.
5. (5) If the tax calculated on the basis of the assessment or re-assessment made under sub-section
6. (3) or
7. (4) is in excess of the amount of tax already paid by the importer, the prescribed authority shall serve on such importer a notice of demand in the prescribed form for the payment of the difference.