Section 21E(4) in Kerala General Sales Tax Rules, 1963
(4)(i)Where in an audit, any irregularity as specified under sub-section (2) of section 18 is detected and such irregularity relates to one return period only and does not disclose any pattern of suppression, the best judgement assessment shall be limited to the return period to which the irregularity relates.(ii)Where the irregularity detected is the failure to prove the claim of any exemption or reduction in rate of tax, the best judgement assessment shall be limited to the disallowance of the claim of such exemption or reduction, as the case may be. Where any such claim of exemption or reduction in rate of tax is disallowed, in addition to the tax that becomes additionally payable, interest under sub-section (3) of section 23 and twice the interest as penalty shall be demanded or levied.(iii)Where the irregularity relates to suppression of taxable turnover and a pattern of suppression is clearly made out, the best judgement assessment shall be in respect of all the return periods to which the pattern is applicable.(iv)Where the best judgement assessment is done after the expiry of the year in which the relevant return periods fall, and the best judgement relates to more than one return period, the assessment shall be made by a single order. However assessment relating to return periods falling under different years shall not be made by a single order.(v)The assessing authority making the best judgement assessment shall serve on the dealer a notice clearly specifying the irregularities or defects noticed and the manner in which the best judgement assessment is proposed to be completed. Where a pattern of suppression is detected, the pattern and the relation borne by such pattern of suppression to the estimate proposed shall be clearly made out in the notice.
