9911796707
TMI Blog1956 (4) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... ounts. It was found that the dealer's gross turnover exceeded the taxable limit during the year 1945-46, and, as such, he became liable to pay sales tax with effect from the 1st of July, 1946. The assessee has already been assessed for the period prior to the 1st of July, 1947, and we are not concerned with the assessment. For the period in question, namely, from the 1st of July, 1947, to the 31st of March, 1948, the assessee was assessed under section 13(5) of the Bihar Sales Tax Act, 1947 (Bihar Act XIX of 1947), hereinafter to be referred to as the Act. Its gross turnover was determined at Rs. 14,40,378-3-3 and its taxable turnover was found to be Rs. 12,48,902. It was, therefore, assessed to pay the sales tax amounting to Rs. 19,514-2-0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legally valid?" It may be noted that in this case the assessee did not file any return and the assessment had to be made to the best of the judgment of the Sales Tax Officer under section 13(5) of the Act. The account books that were produced by the assessee were found not to be genuine. The Sales Tax Officer examined certain forwarding notes and despatch registers maintained at Garh Banaili railway station of the then O.T. Railway which is the nearest station from the place where the firm is located. From the examination of those documents he found that the dealer had despatched 31,500 maunds of jute during the period under assessment from that railway station to various destinations, mostly outside the State of Bihar. He further found tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of the firm. This explanation was not accepted by the Sales Tax Officer and, in my opinion, he was perfectly justified in refusing to accept the same. The partners who are said to have despatched the jute in question either in their individual capacities or on behalf of their separate firms did not produce the account books of those firms to show that these despatches were made on behalf of those firms and not on behalf of the assessee. The account books produced by the assessee did not show the above despatches. They did not show even any purchase of jute by it. When the dealer was asked to explain the same, he kept silent. It may be noted that a surprise visit was made by Mr. C.M. Singh, Assistant Superintendent of Commercial Taxes, to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in Raghubar Mandal Harihar Mandal v. State of Bihar[1952] 3 S.T.C. 65; A.I.R. 1952 Pat. 235. that when no return is submitted the assessment has to be made by the officers concerned to the best of their judgment and in making such assessment there must necessarily be guess-work, which of course must be an honest guess-work. It was further held in that case that an assessment to the best of the judgment has to be made upon inadequate materials and the assessing officer alone has to determine the amount of assessment and the sum payable. It was also held that it is a pure question of fact of which the assessing officer has been made the sole judge and he is compelled to draw inferences and to consider materials which would not be just ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the property in the goods passes. In the present case, therefore, it was quite possible that the property in the jute passed to the buyer even though most of the despatches were made to the address of the consignor himself. There is no material before us from which it could be even urged that the ownership in the described jute did not pass to the buyer at the time of the contract. the onus was on the assessee to prove under what circumstances the despatches were made. Instead of even attempting to discharge that onus it falsely denied to have made them and as such no material could be brought on the record to prove the terms of the contract, if any, under which they were made. The terms of such contract must be within the special knowle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and in favour of the Department. Question No. 2: In this question we are concerned with the despatches of gunny bags. These despatches were undoubtedly made by the assessee. Its contention, however, is that those gunny bags were supplied to it at the orders of the Government on Government account. In support of this contention, reliance has been placed on Annexure B printed at page 65 of the paper book which shows that letters were issued for supply of about 11,600 gunny bags to it on Government account. There is, however, nothing to show that it actually received those gunny bags. It is undisputed that the assessee was dealing in gunny bags also. No account has been produced by it to show as to how many gunny bags he received on Governm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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