2000 (8) TMI 1066 - HC - VAT and Sales Tax

Summary

Issues:
1. Validity of best judgment assessment by the Sales Tax Tribunal for the assessment year 1980-81.
2. Rejection of books of account and denial of exemption for purchase of foodgrains due to non-submission of form III "Ga".
3. Interpretation and applicability of circular issued by the Commissioner of Sales Tax regarding remittance of tax.

Issue 1: The High Court reviewed a revision against the Sales Tax Tribunal's order for the assessment year 1980-81, where the applicant, a registered dealer in foodgrains, faced a best judgment assessment due to the assessing authority disbelieving the disclosed turnover. The Tribunal reduced the turnover by Rs. 3 lakhs, emphasizing the absence of the applicant's books of account as justification for the best judgment assessment. The Court upheld the Tribunal's decision, citing the precedent set by previous cases.

Issue 2: The Court addressed the rejection of the applicant's books of account and denial of exemption for the purchase of foodgrains amounting to Rs. 17,68,084 due to the non-submission of form III "Ga". The applicant failed to demonstrate any flaws in the Tribunal's decision regarding these issues. The Court referred to the decision in a previous case, emphasizing the importance of complying with the necessary documentation requirements for tax assessment.

Issue 3: The Court considered a circular issued by the Commissioner of Sales Tax, which allowed for remittance of tax if evidence of tax payment on goods was provided even without form III "Ga". The Court acknowledged the circular's validity, citing Supreme Court and previous High Court decisions that deemed such circulars binding on tax authorities. The Court directed the applicant to apply for remittance as per the circular and instructed the assessing authority to expedite the decision within three months of receiving the application and court order.

In conclusion, the High Court dismissed the revision, subject to the applicant's compliance with the directive regarding the circular for remittance of tax, emphasizing the importance of adhering to legal requirements and precedents in tax assessments.