1971 (2) TMI 107 - HC - VAT and Sales Tax

Summary

Issues:
1. Assessment of turnover based on best judgment method.
2. Allegation of business abandonment and its impact on assessment.
3. Failure to submit a return after discontinuing business.
4. Dismissal of writ petition due to failure to appeal to the appellate authority.

Analysis:
1. The petitioner was assessed for the years 1963-64 and 1964-65 using the best judgment method due to incriminating materials found during a raid on his premises. Despite the petitioner's objections, the revenue proceeded with the provisional assessment and confirmed it later. The petitioner contended that the assessment was illegal as he had abandoned his business on 31st July, 1964. However, the court noted that the petitioner did not provide any evidence to support the claim of business closure and failed to follow the required procedures under the Tamil Nadu General Sales Tax Act, 1959. The court held that the assessment based on best judgment method was valid, given the lack of evidence supporting the petitioner's claim.

2. The petitioner argued that the slips found during the raid did not have dates or signatures, and hence, could not be linked to his business. The court emphasized that it was within the assessing authority's discretion to determine the relevance of such materials. The petitioner failed to challenge this finding before the appellate authority, which led to the dismissal of the writ petition. The court highlighted the importance of utilizing available remedies under the Act to address grievances regarding assessment decisions.

3. The petitioner's failure to submit a return after discontinuing business was a crucial point of contention. The court pointed out that under rule 15(3) of the Tamil Nadu General Sales Tax Act, 1959, every dealer discontinuing business must submit a return within thirty days of closure. The petitioner did not comply with this requirement, further weakening his argument of business abandonment on 31st July, 1964. The court found the petitioner's claim unsubstantiated and ruled against it.

4. The court ultimately dismissed the writ petition due to the petitioner's failure to appeal to the appellate authority and address the assessment issues through the proper channels. The court emphasized the importance of exhausting available remedies under the Act before seeking judicial intervention. As a result, the rule nisi was discharged, and the writ petition was dismissed, with no costs imposed on either party.