9911796707
TMI Blog2001 (4) TMI 902X X X X Extracts X X X X X X X X Extracts X X X X ..... The facts leading to the present original petition are the following: The assessee reported a total turnover of Rs. 1,87,87,961 and a taxable turnover of Rs. nil in the returns filed for the assessment year 1997-98. The assessee did not produce the accounts for several summons issued and therefore, a best judgment pre-assessment notice was issued proposing to disallow the claim of exemption and to fix the total and taxable turnover at Rs. 1,87,87,961, apart from penalty under section 12(3)(b) of the Tamil Nadu General Sales Tax Act, 1959. After receipt of the notice, several adjournment petitions were filed on several occasions, seeking time to produce the accounts, but they did not produce the accounts and therefore, the proposals were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ickets and therefore, the transactions are to be treated as works contract and not as sales. Though the assessing authority chose to issue pre-assessment notice by disallowing the exemption, the petitioners sought time to produce the accounts. Though the final hearing was fixed as December 15, 2000 the assessment order was made without giving reasonable opportunity and that the direction of the Principal Commissioner and Commissioner of Commercial Taxes clarifying the transactions as works contract, was not followed by the assessing authority. On receipt of the final assessment order, a revised annual return was filed along with the doctor's certificate for the illness of the partner of the firm, who was in-charge of the tax matters, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecause on the date of hearing, namely, September 15, 2000, the accountant would be attending the income-tax hearing. On October 5, 2000, a date in the first week of November, 2000 was sought to produce the accounts. Though the assessing authority fixed the date of hearing as November 10, 2000, again time was sought, as the accountant would be attending the income-tax hearing. Again on December 15, 2000, Mr. D. Jeyaseelan, the partner of the firm, informed the assessing authority that as the accountant was on leave, another date of hearing may be fixed. Only because of the attitude of the petitioners in seeking adjournment, but not producing the accounts, the assessing authority finally passed orders on January 18, 2001. When this best judgm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of any principle of natural justice or lack of jurisdiction to pass the order. If the petitioner was aggrieved against the final assessment order passed in accordance with law, he should have approached the first appellate authority. Without doing so, on the very next day on receipt of the final assessment order, the petitioners have chosen to approach the assessing authority for reopening the assessment under section 14 of the Tamil Nadu General Sales Tax Act. The relevant portion of section 14 of the Tamil Nadu General Sales Tax Act, 1959 reads as follows: 14. Fresh assessment in certain cases. (1) Any dealer assessed under sub-section (2) of section 12 may, within a period of thirty days from the date of service of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o submit incorrect or incomplete return, which was beyond the control of the assessee. In fact, even on February 1, 2001, the assessee only reported a nil taxable turnover. The best judgment assessment in this case has arisen, because of the failure on the part of the assessee to produce the accounts inspite of several opportunities given. In fact, on several occasions, adjournment was sought, because of the absence of the accountant and in such circumstances, the medical certificate produced regarding the illness of the partner of the firm so as to reopen the assessment, could not be the basis at all, in terms of section 14 of the Tamil Nadu General Sales Tax Act. According to section 14 of the Act, reopening of assessment would be done, o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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