(1) The Commissioner may designate any officer not below the rank of a Deputy Commissioner to conduct audit visit at the business place of any dealer and audit the books of accounts, any other records or stock statements and goods relating to the business, either by himself or through audit officers, following such procedures as may be prescribed.

(2)Notwithstanding anything contained in any other provisions of this Act, if any dealer,-

(a)is found on audit of his books of accounts, other records or otherwise to have submitted incorrect or incomplete return for any period or

(b) fails to make available any accounts or other accounts or other records required by the designated officer or audit officer for audit in the business place of the dealer.

(c) fails to prove the claim of any exemption or reduction in rate of tax claimed by him in the return, the audit officer or other Officer authorized by the designated officer, may, after conducting such enquiry as he may deem necessary reject the return and complete the assessments to the best of his judgement.

(3) Notwithstanding anything contained in sub-section (2), the designated officer may, on his own motion or on a reference being made to him by the assessing authority or on application by the assessee, call for and examie the records of any proceeding in which an assessment in pending and, if he considers that, having regard to the nature of the case or the amount involve or for any other reason, it is necessary so to do, he may issued such directions as he thinks fit for the guidance of the assessing authority to enable him to complete the assessment, and such directions shall be binding on the assessing authority. Provided that no direction, which is prejudicial to the assessee, shall be issued before an opportunity is given to the assessee of being heard.