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TMI Blog1986 (12) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... s no excess stock of ammonia sulphate on 15th September, 1974 and that the sale, purchase, stock accounts maintained are up to date and no defect noticed?" 2.. The dealer is registered under the Act. In respect of the year 1974-75, the Sales Tax Officer assessed him to the best of judgment under section 12(4) of the Act which reads as follows: "12. Assessment of tax.-(1) to (3)........................ (4) If a registered dealer does not furnish returns in respect of any period by the prescribed date, the Commissioner shall, after giving the dealer a reasonable opportunity of being heard, assess, to the best of his judgment, the amount of tax, if any, due from the dealer. (5) to (8).........................." 3. The Sales Tax O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecting the books of accounts. In other words, the accounts of the dealer had no defect. 5.. The second part of the question relates to propriety of the best judgment assessment in spite of the correctness of the books of account. As the language of sub-section (4) of section 12 of the Act provides, the mode of assessment under that sub-section is "to the best of judgment". The scheme of assessment under the Act as provided in the various sub-sections of section 12 would indicate that the assessing authority may assess the amount of tax due from the registered dealer on the basis of return furnished by him without requiring his presence where the return furnished is found to be correct and complete, as provided in sub-section (1). Where th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment should have been on the basis of his accounts. 7.. Notice under sub-section (2) and sub-section (4) is given to the assessee in a statutory form under rule 28 of the Rules made under the Act. It is a composite form. The language of sub-section (4) makes it clear that in case a dealer does not furnish the return on a due date, the only method of the completion of the assessment is to the best of judgment of the assessing authority. Having made the default, a dealer cannot complain of the assessment to the best of judgment in spite of correct maintenance of his accounts. This is a legislative mandate in a taxing statute and equity has no role to play therein. Therefore, in the present case, completion of assessment of the amount o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... har) under the Bihar Sales Tax Act, 1944, and again in [1973] 32 STC 77 (Commissioner of Sales Tax, Madhya Pradesh v. H.M. Esufali H.M. Abdulali) under the Madhya Pradesh General Sales Tax Act, 1958. 10.. In [1973] 32 STC 77 (SC) (Commissioner of Sales Tax v. H.M. Esufali H.M. Abdulali) it has been observed that the assessments made on the basis of assessee's accounts and those made on "best judgment" basis are totally different types of assessments. If the Sales Tax Officer was compelled to apply a rule of thumb, the assessee was entirely responsible for that situation. 11.. In view of the language of section 12(4) of the Act, the assessee has no scope to plead or establish any justifiable reason for accepting his books of accounts. Wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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