2007 (2) TMI 619 - HC - VAT and Sales Tax

Summary

Issues:
1. Best judgment assessment based on non-production of books of account.
2. Request for one more opportunity to produce books of account.
3. Conditions imposed for granting the opportunity.

Analysis:
1. The petitioner, a manufacturer of leather goods and a registered dealer, reported turnovers for the Assessment Year 2000-01 under the TNGST Act. However, during the assessment process, the petitioner could not produce the books of account due to labor unrest, leading to a best judgment assessment by the assessing officer.

2. The petitioner sought another chance to present the books of account to potentially reduce the tax liability and penalty imposed. The court acknowledged the reason for non-production and decided to grant the petitioner one more opportunity to produce the necessary records, subject to the condition of paying a specified sum towards the tax liability within a stipulated timeframe.

3. The court directed the petitioner to pay a sum of Rs. 1,00,000 to the assessing officer within two weeks. Upon payment, the impugned order would be set aside, allowing the petitioner to produce the books of account for a fresh assessment. Failure to meet the conditions would result in the petitioner losing the benefits granted by the order, with the respondent authorized to recover the amount as per the law.

This judgment highlights the importance of providing a fair opportunity to present relevant records for assessment purposes, balancing the interests of both the taxpayer and the tax authorities.