AVON PLASTICS Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THIS is an appeal against the order of the Board of Revenue dated 11th March, 1977, in a suo motu revision of the order of the Appellate Assistant Commissioner dated 9th September, 1976. The assessee is a firm consisting of three partners, who are all ladies. The firm reported total and taxable turnovers of Rs. 6, 36, 374.34 and Rs. 5, 98, 609.52 respectively for the year 1974-75 under the Tamil Nadu General Sales Tax Act. The assessing officer issued summons to the dealers calling upon them to produce their accounts on three occasions, viz., 19th September, 1975, 17th October, 1975, and 10th December, 1975, respectively fixing the date for the production of he accounts after about a fortnight.

(2.) THE dealers failed to appear and did not produce the accounts. On 8th January, 1976, the assessing officer issued a notice calling for production of books on 20th January, 1976, and the communication contained also the usual warning that if they failed to produce the accounts, the turnover would be determined to the best of judgment. In their letter dated 20th January, 1976, the dealers requested for time up to the second or third week of February, 1976, and further extension was asked for till 20th March, 1976. The assessing officer considered the request that further extension till 20th March, 1976, could not be granted and he issued the pre-assessment notice on 28th February, 1976, proposing to determine the turnover at Rs. 8, 27, 286.64 by adding 30 per cent to the turnover returned for defects and omissions. The assessee was required to show cause by 16th March, 1976.

(3.) THIS order has been passed under section 34 of the Tamil Nadu General Sales Tax Act. As the marginal note of the provision indicates that the power is conferred on the Board of Revenue to call for the examine of its own motion an order passed by one of the authorities referred to therein and, after making such inquiry or causing such inquiry to be made to pass such order thereon as it thinks fit. It is clear from the marginal note that the power is not intended to be exercised in a routine or casual manner but only on special occasions.