2005 (5) TMI 626 - HC - VAT and Sales Tax

Issues Involved:
1. Validity of assessment orders enhancing taxable turnover.
2. Proper maintenance of books of account by the petitioner.
3. Jurisdiction of the Commissioner in revision petitions.
4. Requirement of depositing statutory amount for revision petitions.
5. Jurisdiction of the High Court under Article 226 of the Constitution.

Detailed Analysis:

1. Validity of Assessment Orders Enhancing Taxable Turnover:
The petitioner, a registered sales tax dealer under the Tripura Sales Tax Act, 1976, contested the assessment orders dated March 31, 1995, which enhanced the taxable turnover for the assessment years 1986-87, 1987-88, and 1988-89. The Superintendent of Taxes, Charge-III, Agartala, determined that the turnover returned by the petitioner did not match the sales shown in the ledger accounts, leading to additional sales tax demands.

2. Proper Maintenance of Books of Account by the Petitioner:
The Commissioner of Taxes, upon revision, noted that the petitioner had not properly maintained essential books of account, including cash books, ledgers, sale registers, and purchase registers. The petitioner failed to reconcile the turnover returned with the sales registers and trading account figures, leading to the rejection of the account books and the best judgment assessment by the assessing authority.

3. Jurisdiction of the Commissioner in Revision Petitions:
The petitioner filed revision petitions under section 21(2) of the Act of 1976 against the assessment orders. The Commissioner upheld the assessment orders, noting that the petitioner did not provide accurate figures for purchases, sales, and stock. The Commissioner concluded that the assessing authority rightly enhanced the taxable turnover and rejected the account books.

4. Requirement of Depositing Statutory Amount for Revision Petitions:
For the assessment year 1988-89, the petitioner's revision petition was rejected due to the failure to deposit 50% of the statutory amount required for entertaining the revision. The petitioner argued that the Commissioner could have waived this requirement under section 20(2), but the learned Government Advocate contended that such a waiver was not permissible under the law, citing relevant case law to support this position.

5. Jurisdiction of the High Court under Article 226 of the Constitution:
The petitioner sought to invoke the jurisdiction of the High Court under Article 226, arguing that the Commissioner's orders were not in accordance with the principles of natural justice. However, the court held that it could not act as an appellate authority to re-examine the facts and evidence, such as entries in cash books and account books, which were already considered by the assessing and revisional authorities. The court emphasized that its role under Article 226 was not to substitute its judgment for that of the assessing authority, particularly in best judgment assessments.

Conclusion:
The High Court dismissed the writ petitions, affirming the Commissioner's decision and the assessment orders. The court found that the petitioner failed to maintain proper books of account and did not comply with statutory requirements for revision petitions. The court also reiterated its limited jurisdiction under Article 226, refusing to re-evaluate the factual determinations made by the tax authorities. No order as to costs was made.

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