(1) Notwithstanding anything contained in section 18, every registered dealer and every dealer who is liable to get himself registered under this Act shall, every year, submit a return to the assessing authority within such period, in such manner, and containing such particulars as may be prescribed.
(2) Before any dealer submits any return under sub-section (1), he shall, in the prescribed manner, pay in advance the full amount of tax payable by him on the basis of such return as reduced by any tax already paid under section 18 and shall furnish along with the return satisfactory proof of the payment of such tax. After the final assessment is made, the amount of tax so paid shall be deemed to have been paid towards the tax finally assessed.
(3) If the assessing authority is satisfied that any return submitted under sub-section (1) is correct and complete, he shall assess the dealer on the basis thereof.
(4) If no return is submitted by the dealer under sub-section (1) before the period prescribed or if the return submitted by him appears to the assessing authority to be incorrect or incomplete, he shall assess the dealer to the best of his judgement recording the reasons for such assessment:
Provided that before taking action under this sub-section the dealer shall be given reasonable opportunity of proving the correctness and completeness of the return submitted by him.
(5) While making any assessment under sub-section (4), the assessing authority may also direct the dealer to pay, in addition to the tax assessed, a penalty not exceeding one and - 10 - a half times the amount of tax due that was not disclosed by the dealer in his return or in the case of failure to submit a return one and a half times the tax assessed, as the case may be.
(6) No assessment under this section for any year shall be made after a period of three years from the date on which return under section 14 for that year is submitted by a dealer:
Provided further that nothing contained in this sub-section limiting the time within which the assessment may be made shall apply to an assessment made on the assessee or any person in consequence of, or to give effect to any finding, direction or order made under sections 28, 29 or 30 or any judgment or order made by any Court.
(7) In computing the period of limitation for assessment 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.
(8) Where an assessment under this section is not concluded within the time specified under sub-section (6), the turnover or the value of taxable goods, as the case may be, declared` by a dealer in his annual return shall be deemed to have been assessed for that year on the basis of the said return and the provisions of the Act relating to assessment of such escaped turnover or purchase value of taxable goods, as the case may be, payment and recovery, appeal and revision shall, mutatis mutandis, apply to such deemed assessment.