(1)With a view of promoting compliance with the provisions of this Act, the Commissioner may arrange for audit of the business of any registered dealer. For the purpose of this section, the selection of dealers for audit shall be made from amongst the dealers,—
(a) who have not filed returns by the prescribed dates; or
(b) who have claimed refund of tax; or
(c) where the Commissioner is not, prima-facie, satisfied with the correctness of any return filed by a dealer or is not satisfied with any claim made, deduction claimed or turnover disclosed in any return filed by the dealer; or
(d) who are selected by the Commissioner on the basis of the application of any criteria or on a random selection basis; or
(e) where the Commissioner has reason to believe that detailed scrutiny of the case is necessary.
(3) On the appointed day or, as the case may be, at anytime within the aforesaid period, any officer to whom the powers and duties under this section have been delegated, by the Commissioner, in writing, may conduct audit of the business.
(For the above subsection (3) the following subsection (3) is substituted by the MaharashtraAct No. XXXII of 2006 Dt. 05.08.2006)
(3) On or after the appointed day any officer to whom the powers and duties under this section have been delegated, by the Commissioner, in writing, may conduct audit of the business.
(The above sub-section (3) is deleted by the Maharashtra Act No. XXV of 2007 Dt. 06.08.2007)
(5) (a) During the course of the audit, the officer may require the dealer,—
(i) to afford him the necessary facility to inspect such hooks of accounts or other documents as he may require and which may he available at such place,
(ii) to afford him the necessary facility to check or verify the cash or stock which may be found therein. And
(iii) to furnish such information as he may require as to any matter which may he useful for or relevant to any proceedings under this Act.
(b) The officer conducting the audit shall on no account remove or cause to he removed any books of accounts, other documents or any cash or stock.