26B. provisions relating to supervised supply, observation and surveillance.-

26B. provisions relating to supervised supply, observation and surveillance.-

(1)     To fulfill the purposes of sub-section (4a) of section 6 of this Act the Commissioner may appoint one or more value added tax officer and give them necessary directives for ensuring  supervised supply, observation and surveillance in the place of production, supply, providing of service or trading of a registered person.

(2)     If the Commissioner has sufficient reason to believe that a supplier of taxable goods or provider  of taxable service does not record correctly the accounts of receivable value and tax against supply of goods on providing of services in the books and commercial documents relating to  value added tax or does not declare correctly in the returns, or does not issue invoice against  supply of goods or rending of service or though issue invoice but does not issue in legal  manner or does not provide information or give untrue information to the value added tax  authority about the transaction or sale of taxable goods or service with a view to avoiding the payment of tax, he may, in order to determine the actual tax liability of the person, appoint, in the place of supply of goods or providing  of service or trading  of the said person, one or more  value added tax officers for so long as he considers necessary and give them necessary  directives to ensure observation, surveillance and supervised supply.

(3)     The officers appointed under sub-section (1) and (2) may, observe, keep surveillance on and supervise supply of goods and providing of service by the said taxpayer and shall submit to the Commissioner information relating to transaction or sale of taxable goods and  service  or  applicable  tax  received  through  such  observation,  surveillance  or supervision, on the basis of which the Commissioner may determine the tax' payable by the taxpayer for the relevant tax period or for any other tax period.

(4)     If the Commissioner has reasons  to believe that an y supplier  of taxable goods  or provider of taxable services does not submit invoice according to section 32 or submit untrue invoice or  does not show sales value or total receipt correctly in the books of accounts kept under section 31 or in the, returns of,t4x period submitted under section

35,  the  Commissioner  may  fix  for  each  tax  period,  the  minimum  amount  of  sale, amount of value addition, base value for payable tax or amount of payable tax for the suppler of  taxable  goods or provider of taxable service in question, on the basis of prima-facie idea considering sale value or total receipt or other relevant information of a supplier :of similar taxable goods or provider of similar taxable service with identical location, environment and  situation in comparison with the said supplier  of taxable goods or provider of taxable services.

(5)     In giving effect to the provisions of this section, other provision of the Act regarding opportunity of being heard in favour of the tax payer shall be followed.

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