Section 12(3) in The Central Sales Tax (Orissa) Rules, 1957
(3)(a)Where the tax audit conducted under rule 10 results in detection of suppression of purchases or sales or both, erroneous claims of exemption or deductions under the Act and the rules made thereunder, evasion of tax or contravention of any provision of the Act affecting the tax liability of the dealer, the assessing authority may, notwithstanding the fact that the dealer may have been assessed under sub-rule (1) or (2), serve on such dealer a notice in Form IV along with a copy of the "Audit Visit Report", directing him to appear in person or through his authorised representative on such date, time and place, as specified in the said notice for compliance of the requirement of clause (b).(b)The assessing authority may, in the notice referred to in clause (a), require the dealer to,(i)produce the books of account maintained under the provisions of the Act and the rules made thereunder;(ii)furnish records and documents required to be maintained under the Act and the rules made thereunder claiming exemptions or deductions from the Turnover under the Act;(iii)furnish any other information relating to assessment of tax, levy of interest and imposition of penalty;(iv)produce such evidence and documents in support of his claim preferred in his return, or any objection he wishes to raise or to rebut the charges or findings made in the "Audit Visit Report"; and(v)explain the books of account, other accounts, records documents or information referred to in sub-clauses (i) to (iv), on the date and the time specified in the notice.(c)On issuance of notice under clause (a), the dealer shall be allowed time for a period of not less than thirty days for production of information as referred to in clause (b).(d)The assessing authority shall, while hearing the dealer for making an assessment of tax payable by him, consider the objection, if any, preferred by such dealer, examine the evidence in support thereof, examine the accounts, documents, records or any other evidence furnished under this sub-rule, call for such information or evidence from any person and make such enquiry as deems necessary for the purpose of such assessment:Provided that not more than three adjournments shall be granted to a dealer for hearing his case.(e)If the dealer fails to appear or cause appearance, or fails to produce or cause production of the books of accounts and documents as required, the assessing authority may proceed to complete the assessment basing on the materials available in the 'Audit Visit Report' and such other materials as may be available, and after causing such enquiry as he deems necessary.(f)Where the dealer to whom a notice is issued under clause (a), produces the books of account and other documents, the assessing authority may, after examining all the materials available with him in the record and those produced by the dealer and after causing such other enquiry as he deems necessary, assess the tax due from that dealer accordingly.(g)Without prejudice to any interest or penalty that may have been levied or imposed under any of the provisions of the Act, an amount equal to twice the amount of tax assessed under clause (e) or (f) shall be imposed by way of penalty in respect of any assessment completed under the said clauses.(h)Notwithstanding anything contained to the contrary in any of the provisions of the rules; an assessment under this sub-rule shall be completed within a period of six months from the date of receipt of the 'Audit Visit Report':Provided that if, for any reason, the assessment is not completed within the time specified in this clause, the Commissioner may, on the merit of each such case, allow such further time not exceeding six months for completion of the assessment proceeding.(i)No order of assessment shall be made under this sub-rule after the expiry of one year from the date of receipt of the 'Audit Visit Report'.
