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TMI Blog2022 (2) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of the petitioner suffers from defects and not reliable and therefore, warrant a best judgment. While the First Appellate Authority has proceeded to reject the estimation on the basis of electricity consumption, but found that the books of accounts suffer from defects warranting best judgment assessment. The Tribunal has however restored the best judgment assessment made on the basis of the electricity consumption and its bearing on the input-output norms, besides rendering a finding that the books of accounts of the petitioner was not reliable for the various defects. There appears to be divergents views insofar as the question as to whether the consumption of electricity can constitute the sole basis for making a best judgment asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal and hence, the matter has to be remanded to the Assessing Authority to re-work the quantum of penalty alone, taking into account the Explanation to Section 12(3)(b) of the TNGST Act, 1959 with respect to the eligible deductions and after providing reasonable opportunity of being heard to the petitioner. The order impugned herein stands set aside and the matter is remanded to the third respondent / Assessing Authority, who shall complete the said exercise within a period of three (3) months from the date of receipt of a copy of this order - Petition allowed by way of remand. - W.P. No.11040 of 2007 And M.P.No.2 of 2007 - - - Dated:- 4-2-2022 - Honourable Mr.Justice R.Mahadevan And Honourable Mr.Justice Mohammed Shaffiq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elly. The result of the case study made on 14.05.1996 revealed the following: Consumption of Electricity during the case study : 42 units Quantum of production 1/2 Jelly 1.35 units 1/2 Jelly 0.65 units 1/2 Jelly 0.40 units Consumption of electricity during the assessment year was 12565 units In view of the above defects and applying the input-output ratio as found in the case study, the assessing officer made a best judgment assessment, determining the total and taxable turnover of ₹ 5,15,060/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer was in order and the same ought not to have been disturbed by the First Appellate Authority. In support of the same, the Tribunal placed reliance on the decisions of this Court as well as the Karnataka High Court in 1992(2) MTCR 226 and 91 STC 100 respectively. Accordingly, the Tribunal restored the order of the assessing officer holding that the best judgment assessment made on the basis of the electricity consumption vis-a-vis determining the input-output ratio, was relevant and that, the books of accounts of the petitioner suffered from various defects, which was already pointed out in the order of assessment. 5.It is against the order of the tribunal, the petitioner has filed this writ petition on the ground that electricity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal, which is in substance a challenge to the best judgment assessment of the Assessing Officer restored by the Tribunal, may not have any merit if one bears in mind the nature of best judgment assessment as explained by the Hon'ble Supreme Court in CST v. H.M. Esufali, H.M. Abdulali [ (1973) 2 SCC 137] , the relevant portion of which is profitably extracted below: ...In the very nature of things the estimate made may be an over-estimate or an underestimate. But that is no ground for interfering with his best-judgment . It is true that the basis adopted by the officer should be relevant to the estimate made. The High Court was wrong in assuming that the assessing authority must have material before it to prove the exact turnov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te, but that itself does not supply a reason or ground for interfering with the same. Keeping in view the above well-settled principle, we are of the view that the order of the Tribunal which is impugned in this writ petition, does not warrant any interference. 9.Coming to the levy of penalty, we find that the assessing officer had levied penalty on the entire turnover arrived at on the best judgment assessment and the same was restored by the Tribunal, by the order impugned herein. Whereas, Explanation to Section 12(3)(b) of the TNGST Act, 1959 provides for certain deductions, while assessing tax at the time of final assessment, for the purpose of determining the quantum of penalty, as can be seen from the extract of the Explanation to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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