- A rebate shall be allowed at the rate of one per cent of the amount of tax paid by the dealer within the time prescribed under subsection (2) of section 11 :(d)appear or produce or cause to be produced- evidence on the date specified under sub-section (2);the prescribed authority shall, after giving a reasonable opportunity to the dealer of being heard, determine the taxable turnover of the dealer to the best of its judgment and assess the tax on the basis of such determination and may, in addition, impose penalty of an amount not exceeding one half of the amount of tax so assessed:Provided that no penalty under this sub-section shall be imposed unless the prescribed authority is satisfied that the failure of the dealer was willful, deliberate or unjustified and unless a reasonable opportunity of being heard is given to the dealer:Provided further that in cases covered by clause (a) of this sub-section, no proceedings for assessment shall be initiated after the expiry of four years from the' expiry of the relevant period due for assessment or in cases in which the assessment is made as a result of an order in appeal, revision or review, after the expiry of two years from the date of such order.(4)If upon information received, the prescribed authority is satisfied that a dealer liable to pay tax under this Act in respect of any period wilfully failed to apply for registration under subsection (1) of section 10 or having applied, wilfully failed to furnish any particulars or information required for the purpose of registration or having been registered fails to furnish returns within the period prescribed under sub-section (1) of section 11, the said authority shall, after giving the dealer a reasonable opportunity of being heard, assess, according to its best judgment, the amount of tax due from the dealer for such period or any subsequent periods and in addition, may impose a penalty of an amount not exceeding one half of the amount of tax so assessed:Provided that no proceedings under this sub-section shall he initiated after four years from the expiry of such period.Explanation. - For the purpose of sub-section (3) or subsection (4), as the case may be, the proceedings shall be deemed to have been initiated when a notice therefor is served or deemed to have been served on the dealer.(5)If upon information which has come into possession, the prescribed authority has reason to believe than any turnover of a registered dealer in respect of any period has for any reason escaped assessment or was under-assessed or assessed at a rate or rates lower than the rate' or rates correctly applicable, or any deduction from turn over had been wrongly made, it shall, within six years of the expiry of such period, serve on the dealer a notice in the prescribed Form and proceed to assess or reassess the amount of tax due from the dealer in respect of such turnover in the manner specified by or under this section:Provided that the amount of tax shall be assessed or reassessed after allowing such deduction and applying the same rate of tax as was admissible during the said period:Provided further that the said authority may, after giving reasonable opportunity to the dealer of being heard, impose a penalty not exceeding the amount of extra tax found leviable in the proceedings under this sub-section, if it is satisfied that the escape from assessment or under assessment had been caused by the deliberate and willful failure on the part of the dealer(a)to disclose, at the time of original assessment the particulars of such turnover; or(b)to furnish correct particulars.
