CLASSIC AND COMPANY Vs. DEPUTY COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) THE original petition is taken up for final disposal after hearing the learned Senior Standing Counsel. The prayer in this petition is to quash the proceedings in TNGST No. 2422343/99 -2000 dated May 28, 2001 which was purported to be made under Section 12(1 -A) of the Tamil Nadu General Sales Tax Act, 1959. Thiru R. Senniappan, the learned counsel for the petitioner contended that in this case, the order was made under Section 12(1) of the Tamil Nadu General Sales Tax Act, 1959 in TNGST No. 2422343/99 -2000 dated January 2, 2001 by accepting the turnover as reported by the assessee. However, the assessing authority has chosen to reopen the assessment under Section 12(1 -A) of the Act by calling for the accounts. Really, for non -production of accounts, an addition of 50 per cent of the book turnover was made and, on that basis the assessment was completed by levying tax on the entire turnover of Rs. 51,15,669 at 8 per cent without granting any concessional rate of tax for sales against form XVII. Even before final assessment form XVII declaration has been filed for the turnover of Rs. 4,49,735 apart from "H" forms of declaration filed for Rs. 24,54,269. Without referring to all the details, the assessment was made and decided.

(2.) IT is seen that Section 12 of the Tamil Nadu General Sales Tax Act, 1959 contemplates either making a detailed scrutiny before passing final assessment orders in terms of Section 12(1 -A) of the Act or accepting the return under Section 12(1) on the ground that the turnover of the assessee did not exceed Rs. 1 crore. Therefore, in this case, if assessment has been made under Section 12(1) of the Act by accepting the self -assessment returns, then no reopening of the assessment can be made under Section 12(1 -A) of the Act by saying that the earlier assessment made under Section 12(1) of the Act was provisional final assessment order. Section 12 of the Act contemplates only a final assessment order and there is no question of passing any provisional final assessment orders in terms of Section 12 of the Act. However, if the assessment has been made either under Section 12(1) or 12(1 -A) of the Act, it could be reopened under Section 16 of the Act, for "any reason". If, in this case, the assessing authority wanted to verify the forms of declaration filed or required any further details to reopen the assessment under Section 16 of the Act, the proper course is to inform the assessee about this and thereafter, on check of accounts, pass an order under Section 16 of the Act in accordance with the provisions of the Act after giving reasonable opportunity to the assessee. Apparently, the assessing authority has merely added 50 per cent to the turnover and made an assessment on the erroneous conclusion that the assessment made is a best judgment assessment under Section 12(1 -A) of the Act. In such circumstances, the impugned order dated May 28, 2001 is set aside and the matter is remitted back to the assessing authority and as the assessee is prepared to produce all the records, an opportunity may be given to the assessee to produce the records and verify the details and thereafter, if need be, issue a pre -revision notice under Section 16 of the Act and pass order after considering the objections filed by the assessee, if any, in accordance with law. The original petition is disposed of on the above terms. As the original petition is disposed of, the original miscellaneous petition does not survive.