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TMI Blog1976 (2) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1973, came into effect. Sub-section (1) of section 3 of the said Act provides that on and from the appointed day, the management of all coal mines shall vest in the Central Government. Mine has been defined under the said Act as follows: "2. Definitions.-....... (g) 'mine' means any excavation where any operation for the purpose of searching for or obtaining minerals has been or is being carried on, and includes- (i) all borings and bore-holes; (ii) all shafts, whether in the course of being sunk or not; (iii) all levels and inclined planes in the course of being driven; (iv) all open cast-workings; (v) all conveyors or aerial ropeways provided for the bringing into or removal from a mine of minerals or other articles or for the removal of refuse therefrom; (vi) all lands, buildings, works, adits, levels, planes, machinery and equipments, instruments, stores, vehicles, railways, tramways and sidings in, or adjacent to, a mine and used for the purposes of the mine; (vii) all workshops (including buildings, machinery, instruments, stores, equipments of such workshops and the lands on which such workshops stand) in, or adjacent to, a mine and used substantially for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iv) all open cast-workings; (v) all conveyors or aerial ropeways provided for bringing into or removal from a mine of minerals or other articles or for the removal of refuse therefrom; (vi) all lands, buildings, works, adits, levels, planes, machinery and equipments, instruments, stores, vehicles, railways, tramways and sidings in, or adjacent to, a mine and used for the purposes of the mine; (vii) all workshops (including buildings, machinery, instruments, stores, equipments of such workshops and the lands on which such workshops stand) in, or adjacent to, a mine and used substantially for the purposes of the mine or a number of mines under the same management; (viii) all coal belonging to the owner of the mine, whether in-stock or in transit, and all coal under production in a mine; (ix) all power stations in a mine or operated primarily for supplying electricity for the purpose of working the mine or a number of mines under the same management; (x) all lands, buildings and equipments belonging to the owners of the mine, and in, adjacent to or situated on the surface of, the mine where the washing of coal obtained from the mine or manufacture therefrom, of coke is carri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It appears that on 9th July, 1973, there was a notification under section 5 of the Coal Mines (Nationalisation) Act, 1973, which was to the following effect: "G.S.R. 345(E).-In exercise of the powers conferred by subsection (1) of section 5 of the Coal Mines (Nationalisation) Act, 1973 (26 of 1973), the Central Government hereby directs that the right, title and interest of the owners in relation to all the coal mines referred to in section 3 of the said Act, except the coal mines specified against serial numbers 45 to 219 (both inclusive), 227, 235, 237, 260, 265, 275, 441, 483 and 583 of the schedule to the said Act, shall with effect from the 9th July, 1973, vest in the Coal Mines Authority Limited, Calcutta, a Government company incorporated under the Companies Act, 1956 (1 of 1956), and having its registered office at Calcutta, in the State of West Bengal." The impugned assessment order was made as mentioned hereinbefore on 16th January, 1974. There was a fresh certificate of incorporation in favour of Coal India Limited on 21st October, 1975. Section 17 of the Bengal Finance (Sales Tax) Act, 1941, provides as follows: "17. Transfer of business.-Where the ownership of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ernment, but the effect of section 3 of the Coal Mines (Nationalisation) Act, 1973, is not that the ownership of the business as such has been taken over. As a matter of fact, the business of the company or the business of the owner continues as is apparent from the provisions of section 7, section 8 and section 32 of the Act. It appears to me that the right, title and interest of the owner in relation to the coal mines as defined under sub-section (h) of section 2 of the Act, namely, the specified items belonging to the coal mines have been taken over as a result of the said Act, but the ownership of the business as such continues to be with the erstwhile owners. Counsel for the revenue drew my attention to the preamble of the Act. It does not state that the Act is for the transfer of the ownership of the business carried on by the owners of the coal mines as such. In the aforesaid view of the matter I am unable to accept the contention that by virtue of section 17 of the Bengal Finance (Sales Tax) Act, 1941, the petitioner was not liable to be assessed at all in this case. In the case of Kshitish Chandra v. State of West Bengal[1967] 20 S.T.C. 42., it was held by a Division B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t requires to be completed at the very earliest. So, the dealer cannot be given any more chance and under the circumstances, stated above, the assessment is taken up ex parte and is completed to the best of my judgment. The dealer has been allowed an exemption of Rs. 90,00,000.00 under section 5(2)(a)(v) of the State Act case on account of sales in the course of inter-State trade or commerce. Considering all the facts and circumstances, I determine the dealer's gross turnover at Rs. 90,00,000.00 exclusive of any Central sales tax to my best judgment. Computation Sales to others of declared goods: Rs. 90,00,000.00 Tax payable at 3 per cent Rs. 2,70,000.00 Tax paid is Nil Total tax due Rs. 2,70,000.00 Issue form 4 accordingly. Sd./D.N. Mitra, 16-1-1974, C.T.O., C.S." This was a best judgment assessment. The respondent assessing authority was entitled to make a best judgment assessment in the facts and circumstances of the case. But the best judgment assessment does not permit an assessing authority to make an arbitrary or whimsical assessment. There must be basis for the said assessment and the basis of such assessment must have some rational nexus to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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