(1) Every registered dealer and every dealer liable to take out registration under this Act shall submit such return or returns relating to his turnover in such manner and within such period as may be prescribed.

(2) If the assessing authority is satisfied that any return submitted under sub-section (1) is correct and complete, it shall assess the dealer on the basis thereof.

(3) If no return is submitted by the dealer under sub-section (1) within the prescribed period, or if the return submitted by him appears to the assessing authority to be incorrect or incomplete, the assessing authority shall, after making such enquiry as it may consider necessary and after taking into account all relevant materials gathered by it, assess the dealer to the best of its judgement:

Provided that before taking action under this sub-section the dealer shall be given a reasonable opportunity of being heard and, where a return has been submitted to prove the correctness or completeness of such return.

(4) Notwithstanding anything to the contrary contained in sub- sections (3) and (4A) the assessing authority may accept the return for any year, the assessment relating to which has not been completed along with the statements prescribed, which are in accordance with the provisions of the Act and rules made there under, submitted by a dealer, having dealings in goods coming under the Third Schedule to the Act, irrespective of any limit in turnover, or by a dealer whose total turnover specified in the return submitted by him for the year for which the assessment relates does not exceed rupees fifteen lakhs or by a dealer having dealings only at non-taxable points of goods coming in the First, Second or Fifth Schedules and whose total turnover specified in the return does not exceed rupees forty lakhs or by a dealer the tax payable by whom for the said year does not exceed rupees five thousand and assess the dealer on the basis of such return:

Provided that every year out of the assessments relating to the preceding year to be completed under this sub-section, the Deputy Commissioner may select twenty per cent by following such procedure as may be specified by the Commissioner, for detailed scrutiny of the accounts and other records and if the dealer is found to have not accounted any purchases or sales or otherwise attempted to evade payment of tax, the assessment of the dealer for the previous five years may be reopened and escaped turnover shall be assessed or levy of tax be made after following the procedure prescribed in sub-section (3) and the limitation prescribed under any of the provisions of the Act shall not apply to such cases.

Provided further that where the return filed by any dealer falling under any of the categories referred to in this sub- section is not accompanied by any statement required by this Act or the rules made there under in support of any claim or exemption from, or reduction in, the rate of tax, the assessing authority shall, after due notice to the dealer, complete the assessment on the basis of the turnover conceded in the return, disallowing the claim for such exemption or reduction to the extent to which it is not proved.

Provided also that where any evasion of tax is detected against any dealer whose assessments have been completed under this sub-section, the dealer shall cease to be eligible for assessment under this sub-section for any subsequent period.

(4A) Notwithstanding anything to the contrary contained in sub-section (3) in the case of a co-operative society registered or deemed to be registered under the Kerala Co-operative Societies Act 1969 (21 of 1969), the assessing authority shall make the final assessment for the year 1980-81 and for every subsequent year on the basis of the return furnished by that society, if such return is duly supported by the audit report of such society issued by the Registrar of Co-operative Societies;

Provided that the provisions of this sub-section shall not apply if the audit report of the co-operative society issued by the Registrar of Co-operative Societies is not furnished within a period of three years from the expiry of the year to which it relates:

Provided further that the provisions of this sub-section shall not apply in the case of a co-operative society, which has been punished, or on which a penalty has been imposed or from which a sum of money has been accepted under section 47 for evasion of tax for the year for which the return has been furnished.

(4B) Notwithstanding anything to the contrary contained in section 5 or in the foregoing provisions of this section, in respect of works contracts, the assessing authority may, on the application of the works contractor, complete the assessment in relation to such works contract for the period prior to 1st day of April, 1999, in one block, and the provisions of this Act and the rules made there under other than those relating to rate of tax, shall apply to such assessment as if it were an assessment for the year 1998-99. The rate of tax applicable to each works contract shall be the lowest rate applicable to such type of works contract during any year of the block period in respect of such works contract:

Provided that no refund of any tax already paid shall be allowed.

(5) For the removal of doubt it is hereby clarified that nothing contained in sub-section (4) shall be deemed to exclude the operation of section 19, section 19B, section 19C or section 27 in the case of a dealer assessed under that sub-section.

(5A) Where on reopening o an assessment completed under sub-section (4), in respect of any dealer, it is found that the amount of tax, if any, paid by such dealer is less than the amount of tax which he is liable to pay on such fresh assessment, the assessing authority shall directed such dealer to pay the difference between the amount of tax already paid by him and that arrived at on such fresh assessment, together with thrice the amount of such difference as penalty.

(6) Any assessment under this Section shall be completed within a period of four years from the expiry of the year to which the assessment relates:

Provided that this time limit shall not apply in the case of dealers who, being liable to get themselves registered as provided for under the Act and the Rules made there under have failed to do so or have done business as benamidars or through benamies.

Provided further that the assessment relating to the year 1994-1995 shall be completed on or before 31st March 2000.

Provided also that any assessment, other tan an assessment falling under sub-section (4) or sub-section (4A), shall be completed within four months from the last date of checking of the books of accounts for the purpose of assessment for the year or within six months from such date with the permission of the next higher authority:

Provided also that all assessments pending as on 31st March, 2013 shall be completed on or before the 31st March, 2014.

Provided further that in case where any assessment completed under this Act has been reopened with the permission of the Commissioner, the time limit mentioned in section 19 shall not apply.

Explanation. - For the purpose of the above proviso, it is clarified that the extension of time granted for completion of assessments is applicable in all cases where regular assessments have not been completed before the date fixed for completion of assessment in the respective years.

(7) Notwithstanding anything contained in sub-section (6), in cases where any investigation or inquiry is pending under this Act or any other law or where any assessment cannot be completed within the period specified under the said subsection, the Deputy Commissioner may, for good and sufficient reasons, extend the period of completion of the assessment beyond the period specified in that sub-section.

(8) Any assessment or reassessment in pursuance of an order of an appellate or revisional authority shall, be completed within a period of four years from the expiry of the year in which the order was received.

Provided that all such assessments or re-assessments pending as on the 31st March, 2013 shall be completed on or before the 31st March, 2014.

Provided further that any modified assessment or modified re-assessment in pursuance of an order of the appellate or revisional authority shall be completed within a period of one year from the expiry of the year in which the order was received.

Provided also that all such modified assessments or modified re-assessments or remanded assessments pending as on the 31st March, 2013 shall be completed on or before 31st March, 2014.

(8A) Notwithstanding anything contained in sub-section (8) in case of any investigation or enquiry is pending under this Act or any other law, where any assessment can not be completed within the period specified under the said sub-section, the Commissioner may, for good and sufficient reasons, extend the period of completion of the assessment not exceeding a period of six months from the period specified in that subsection.

(9) In computing the period for the completion of an assessment under this section the time during which the proceedings for assessment remained stayed under the orders of a court or other competent authority shall be excluded.