1990 (6) TMI 196 - HC - VAT and Sales Tax

Summary

Issues:
1. Failure to submit tax returns under the Tripura Sales Tax Act, 1976.
2. Best judgment assessment by the Superintendent of Taxes.
3. Petition for rectification of mistake under section 12(1) of the Act.

Analysis:
1. The petitioner, a partner of a firm engaged in the sale and supply of motor parts, failed to submit tax returns for three quarters as required by the Tripura Sales Tax Act, 1976. Despite notices and opportunities provided by the Superintendent of Taxes, the petitioner did not comply, leading to a best judgment assessment of turnover and tax payable for the respective quarters.

2. The petitioner subsequently filed petitions for rectification of the assessment orders, claiming that the assessments were arbitrary and lacked evidentiary basis. However, both the Superintendent of Taxes and the Commissioner of Taxes rejected the rectification petitions, stating that there was no mistake apparent on the face of the records. The petitioner contended that the best judgment assessment was not supported by evidence, constituting a mistake under section 12(1) of the Act.

3. The court analyzed the scope of section 12(1) and established that the power of rectification is limited to correcting mistakes that are obvious, patent, and self-evident from the records of the case. It clarified that rectification does not extend to reviewing assessments based on new information or re-estimating turnovers. The court emphasized that rectification cannot be used to challenge assessments based on judgment calls or debatable points of law. Ultimately, the court found no apparent mistake in the assessment orders and upheld the decisions of the tax authorities to reject the rectification petitions.

Overall, the court dismissed the writ petitions, concluding that the petitioner's request for rectification was essentially a plea for a review of the assessment, which falls outside the purview of rectification under section 12(1) of the Act.