49. Amendment of assessment.

For the purpose of amendment of assessment under sub-section (7) of section 29, a notice shall be issued by the designated officer, to the person, clearly stating the grounds for the proposed amendment, the date, time and place ,fixed for such amended assessment. After hearing , the person  concerned  and making such enquiry, as the designated officer may consider necessary, he  may proceed to amend the orders as he deems fit subject, however , to the following conditions, namely :-

(a) No amendment, which has the effect of enhancing the amount of tax,  shall be made by the designated  officer,  unless he  has given notice to the person concerned of its intention to do so and has allowed him a reasonable opportunity of being heard.

(b) Where such amendment has the effect of enhancing the amount of the tax or penalty , the designated officer, shall serve on the person a Tax Demand Notice in Form VAT – 56 as required under sub-section (11) of section 29 and thereupon , the  provisions of the Act and these rules shall apply, as if such notice had been served in the first instance.

(c) Where any amendment made under sub-section (7) of section 29 has the effect of reducing the tax or penalty, the designated officer shall order refund of the amount, which may be due to the person and the procedure for refund laid down in rule 52 shall apply.