1963 (4) TMI 47 - HC - VAT and Sales Tax

Summary

Issues:
- Assessment made without issuing a notice to the assessee under the U.P. Sales Tax Act.

Analysis:
The judgment pertains to a case where an assessee, a dealer, did not submit a return for the assessment year within the prescribed time. The Sales Tax Officer proceeded to make a best judgment assessment without issuing any notice to the assessee. The assessee contended that the assessment was invalid as no notice was served for appearance during the proceedings. The Court examined the provisions under section 7(3) of the U.P. Sales Tax Act, which allows the assessing authority to make a best judgment assessment if the return is found incomplete or incorrect, without the requirement of issuing a notice specifically for the best judgment assessment. The Court cited a previous decision to support the view that no notice is necessary for the best judgment assessment if the assessee fails to prove the correctness or completeness of the return. The Court emphasized that the assessee's failure to avail the opportunity to prove the correctness of the return does not entitle them to challenge the best judgment assessment on the grounds of lack of notice.

The Court highlighted that the principles of natural justice are met when the assessee is given an opportunity to submit a correct and complete return and to prove its accuracy. If the assessee fails to do so, the best judgment assessment is a consequence of their own default, and no further notice is required. The Court concluded that in cases where the assessee has not filed a return or failed to prove the correctness of the filed return, the assessing authority is empowered to proceed with a best judgment assessment without issuing a separate notice. Therefore, the Court answered the question posed by the Judge (Revisions) in the affirmative, affirming the validity of the assessment made without issuing a notice to the assessee. Additionally, the Court directed the copies of the judgment to be sent to the relevant authorities and ordered the assessee to pay costs associated with the reference.