Assessment of tax payable by registered dealers

(1) If no returns are furnished by a dealer in respect of any period by the prescribed date, or the prescribed authority is not satisfied that the returns furnished are correct and complete, the prescribed authority shall proceed in such manner as may be prescribed to assess to the best of his judgment the amount of tax due from the dealer, and in making such assessment, give a dealer a reasonable opportunity of being heard. (2) In the case of failure by a registered dealer to furnish, in respect of any period, a return accompanied by a receipt from a Government Treasury or the State Bank of Sikkim or any other bank as may be notified by the Government as required under sub-section (9) of section 30, by the prescribed date, the prescribed authority may, if it is satisfied that the default was made without reasonable cause, direct that the registered dealer shall pay by way of penalty in addition to the amount of tax so assessed a sum not exceeding one and a half times that. (3) Where a registered dealer brings to the notice of the prescribed authority in writing ordinarily within six months from the end of the year that, due to error of fact or of law, an amount of tax has been paid by him in excess of what was payable by him during any return period relating to such year and requests the prescribed authority for making assessment, proceed to make assessment in respect of such year before the expiry of the period of limitation provided in sub-section (2) of section 42. (4) Where upon search or seizure of any accounts, registers or documents or of any goods of a registered dealer, or upon enquiry or information received, the prescribed authority has reasons to believe that the dealer has not accounted for the turnover of sales of goods or purchases of goods as appear from such accounts, registers or documents in the books of accounts referred to in section 54 or has not shown such turnover in his return furnished under section 30 in respect of any return period, the prescribed authority shall proceed in such manner as may be prescribed to assess to the best of his judgment the amount of tax payable by the dealer in respect of such return period after giving the registered dealer a reasonable opportunity of being heard and direct such dealer to pay the amount of tax so assessed in such manner and by such date as the prescribed authority may deem fit. (5) In the case of failure by the registered dealer to furnish in respect of any period, a return accompanied by a receipt from the Government Treasury or the State Bank of Sikkim or any other bank as may be notified by the Government required under sub-section (5) of section 36 by the prescribed date, the prescribed authority may, if it is satisfied that the default was made without reasonable cause, direct that the dealer shall pay by way of penalty in addition to the amount of tax so assessed, a sum not exceeding one and a half times of that amount.