9. Returns and assesement

(1) (a) Every importer registered under this Act and every importer whose application for the registration under this Act is pending with the assessing authority shall every year or at such shorter intervals as may be prescribed, submit a return to the assessing authority within such period and in such manner containing such particulars as may be prescribed. The proforma of return, the interval of period at which and the time period within which a return is required to be filed may be prescribed differently for different class of importers, inter alia, depending upon the extent of business, annual tax liability and the class of goods usually dealt in.

(b) Before any importer submits any return under clause (a), he shall in the prescribed manner pay the full amount of tax payable by him on the basis of such return and shall furnish along with the return proof of the payment of such tax. The amount of tax so paid shall when the final assessment is made, be deemed to have been paid towards the tax finally assessed.

(c) If no return is submitted by an importer under clause (a) within ninety days of its due date, the assessing authority shall, before expiry of a period of three years from the last day of the year to which or a part of which the return relates, proceed to assess the importer to the best of its judgement for the return-period, recording the reasons for such assessment and while so assessing, the assessing authority may, subject to such rules as may be prescribed, presume that the turnover of the importer for the period under assessment has been not less than the turnover for the corresponding period of the previous year:

Provided that before taking action under this subsection the importer shall be given a reasonable opportunity of being heard.

(d) Save as provided in clause (c) ?

(i) if the assessing authority is satisfied that any return submitted under clause (a) is correct and complete, he shall assess the importer on the basis thereof;

(ii) if the return submitted by an importer under clause (a) appears to the assessing authority for good and sufficient reasons, to be recorded in writing, to be incorrect or incomplete, the assessing authority shall, before expiry of a period of three years from the last day of the year to which or a part of which the return relates, assess him to the best of its judgement recording the reasons for such assessment:

Provided that before taking action under this clause the importer shall be given a reasonable opportunity of proving the correctness and completeness of the return submitted by him.

(e) If upon information which has come into its possession, the assessing authority is satisfied that any importer has been liable to pay tax under this Act in respect of any period but has failed to apply for three years after the expiry of such period, after giving the importer a reasonable opportunity of being heard, proceed to assess, to the best of its judgement, the amount of tax, if any, due from the importer in respect of such period and all subsequent periods and in case where such importer wilfully failed to apply for registration, the assessing authority may direct that the importer shall pay by way of penalty a sum equal to the amount of tax assessed and found due against him.

Explanation. For the purposes of this clause, an importer shall be deemed to have failed to apply for registration, if he makes an incomplete application for registration, or having made an application for registration, fails to comply with any direction given to him by the assessing authority within the time specified for the purpose.

(2) If the assessing authority has reasons to believe that the whole or any part of the turnover of an assessee has escaped assessment of tax or rate at which it is assessable under this Act or any deduction or exemption has been wrongly allowed in respect thereof, the assessing authority may, notwithstanding the fact that whole or part of such escaped turnover or value of taxable goods was already before the said authority at the time of original assessment or re-assessment, subject to the provisions of sub-section (4), at any time within a period of three years from the date of framing of the assessment, or re-assessment made before, proceed to assess or re-assess to the best of its judgement the tax payable by the assessee in respect of such turnover, after giving him a reasonable opportunity of being heard and after making such enquiry as it may consider necessary.

(3) In computing the period of limitation for assessment or reassessment under this section,

(a) the time during which the proceedings for assessment in question have been deferred, on account of any stay order granted by any court or any other authority, shall be excluded;

(b) the time during which the assessment has been deferred, in any case or classes of cases by the Commissioner, for reasons to be recorded in writing, shall be excluded:

Provided that nothing contained in this section limiting the time within which the assessment may be made shall apply to an assessment made on the assessee in consequence of, or to give effect to any finding, direction or order made on appeal or revision under this Act, or any judgement or order made by any court or any other competent authority.

(4) Where an assessment under this section is not concluded within the time, if any, specified therein, the turnover of goods, declared by the assessee in his return, shall be deemed to have been assessed on the basis of the said return and the provisions of this Act relating to assessment, re-assessment, payment and recovery of tax, appeal and revision shall mutatis mutandis apply to such deemed assessment.

(5) While making any assessment of tax, the authority making the assessment shall also calculate the amount of tax payable by the assessee for each return-period under assessment, and shall, if the amount of tax calculated by it for any period is five percent more than the sum of tax paid by the assessee for that period up to the last date prescribed for filing of the return for the said period, direct him to pay, in addition to the amount of tax calculated by it, interest on the amount of difference between the tax calculated and the tax paid, computed at the rate of two per cent per month for the first twelve months and at the rate of three per cent per month for the remaining period of time beginning with the day following the last date prescribed for filing of the return, notwithstanding whether the return was filed late or was not filed, to the date of payment or the date of framing assessment, whichever is earlier.

(6) The amount of any tax due according to the return filed by an assessee remaining unpaid shall be recoverable, along