K ANNAMALAI Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) Heard Mr.S.Ramanathan, learned counsel appearing for the petitioner and Mr.S.Kanmani Annamalai, learned Additional Government Pleader appearing for the respondent.

(2.) The petitioner has filed this writ petition challenging the assessment order passed under the erstwhile Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as TNGST Act) for the year 1997-98. The assessment was made on the petitioner on best of judgment basis and though the petitioner was summoned to produce the books of accounts, he did not do so and pre-assessment notice was issued on 10.02.2004 and served on the petitioner on 13.02.2004 and in spite of receipt of the notice, the petitioner had filed their objections and therefore the assessing officer completed the assessment which has resulted in the impugned order.

(3.) The learned counsel appearing for the petitioner submitted that the impugned proceedings is clearly barred by limitation as it is an assessment under section 16 of the TNGST Act and the relevant assessment year is 1997-98 and in terms of the section 16(1)(a) of the TNGST Act, the assessment of the escaped turnover could have been made at any time from the expiry of the year to which the tax relates. It is contended that in so far as the petitioner's case is concerned, the relevant year being 1997-98 the escaped turnover could have been reassessed within a period of five years from the date of which the year of assessment relates which will come to an end on 31.03.2003. It is pointed out that the notice for best judgment assessment in the instant case was issued on 10.02.2004 and therefore it is barred by limitation. In support of such contention, the learned Counsel placed reliance on the decision in bears all the decision in Regional Assistant Commissioner of Sales Tax, Indore vs. Malwa Vanaspati and Chemicals Co. Ltd, 1968 21 STC 431 and Ramakutty Nadar vs. State of Madras, 1973 31 STC 44. Further the reliance was also placed in the decision of the Rajasthan High Court in the case of Jaipur Udyog Ltd., vs. Commercial Taxes Officer, 1979 44 STC 456 (Raj) which has been followed by this Court in the case of Venkateswara & Co., Vs. Deputy Commercial Taxes Officer,2005 133 STC 606.