COMMISSIONER OF SALES TAX Vs. KUNTE BROTHERS

JUDGEMENT

(1.) THIS is a reference by the Sales Tax Commissioner, M. P. , under Section 13 (1) of the M. B. Sales Tax Act, 1950 (hereinafter called the Act ). The questions referred to for decision are :

(2.) THE material facts are that the assessee-firm, Messrs Kunte Brothers of Gwalior, is a dealer in scientific instruments, chemicals, etc. During the assessment year 1951-52 its taxable turnover was determined at Rs. 4,071-4-0, and sales tax was levied accordingly. Subsequently, the assessing authority discovered that there was an under-assessment for the year in question. A notice under Section 10 of the Act was therefore issued to the non-applicant and it was asked to produce its account books and other relevant records for further scrutiny. The assessee failed to appear or to produce its account books in response to this notice. Thereupon the Sales Tax Officer made an estimate of the escaped turnover and made an assessment to the best of his judgment. The total taxable turnover of the dealer was found to be Rs. 28,000, inclusive of the taxable turnover of Rs. 4,071-4-0 determined earlier. After giving credit for Rs. 208-14-9 deposited under the first assessment, an additional demand for payment of Rs. 1,541-1-3 was made on the assessee. The assessee unsuccessfully preferred a revision petition before the Commissioner of Sales Tax. The present reference has been made at his instance.

(3.) THE answer to the first question depends on Section 10 of the Act, which runs as follows :