Section 32. Return scrutiny and provisional assessment

(1) Returns or revised returns furnished by the dealer in accordance with section 29 shall be subject to scrutiny by the Commissioner

(2) (a) If any dealer has furnished return or revised return according to which,-

(i) net amount of tax payable, in accordance with section 13, is nil, or

(ii) the amount of tax credit is carried forward for subsequent return, or

(iii) the amount of refund is claimed there in, or 

(iv) the dealer has claimed in his return or the revised return higher amount of tax credit than the admissible amount of tax credit,-

then, the Commissioner may, as soon as possible, provisionally assess such dealer for the period of such return or as the case may be, revised return. For the purpose of aforesaid provisional assessment, the Commissioner shall serve on such dealer in the prescribed manner a notice requiring him to explain in writing, on or before the date specified there, the basis on which the dealer has furnished such returns or the revised returns. The Commissioner may, after considering such explanation provisionally assess the amount of tax due from such dealer and issue an order in the prescribed form.

(b) If the dealer who has been served the notice under clause (a) fails to comply with requirement of clause (a), the Commissioner shall determine the amount of tax payable in the manner as may be prescribed and serve on such dealer an order of the provisional assessment.

(3) Where a registered dealer has not furnished the return in respect of any tax period within the prescribed time, the Commissioner shall, notwithstanding anything contained in section 34, proceed to assess the dealer provisionally for the period for such default. Such provisional assessment shall be made on the basis of past returns or past records or on the basis of information received by the Commissioner and the Commissioner shall direct the dealer to pay the amount of tax assessed in such manner and by such date as may be prescribed.

(4) Where the Commissioner has reason to believe that the dealer has evaded the tax or has claimed more amount of tax credit than the admissible amount of tax credit, he may, after taking into account all relevant materials gathered by him and after giving the dealer a notice in the prescribed form, provisionally assess to the best of his judgment the amount of tax payable by the dealer.

(5) The provisions of this Act shall mutatis mutandis apply to the provisional assessment as if provisional assessment were an audit assessment made under this Act

(6) Nothing contained in this section shall prevent the Commissioner from making assessment under sections 33 and 34.