COMMISSIONER OF SALES TAX Vs. SHAYAM VASTRA BHANDAR

JUDGEMENT

(1.) AT the instance of the applicant-department, the Tribunal (Board of Revenue) has referred, on the application registered as RA No. 94-V/88 against the order dated August 16, 1988 passed by the Tribunal in Appeal Case No. 95-V/86, the undernoted question of law under section 44 (1) of the M. P. General Sales Tax Act, 1958 (for short "the Act") read with section 13 of the Entry Tax Act, for our opinion :

(2.) FACTS lie in a narrow compass : The non-applicant deals in clothes, bhangar and utensils, etc. For the period from November 16, 1982 to November 4, 1983, the assessment order was passed by the Sales Tax Officer, Betul. The details of the entries in the return filed by the non-applicant were found incorrect, tax calculation chart was also found incorrect. While the total turnover was shown in the return at Rs. 12,77,858. 85, the books of accounts showed total turnover at Rs. 12,43,694. 69. The difference in the return and the books of accounts was due to the fact that certain purchases like utensils, bhangar, etc. , were shown in the return after deductions. The returns were filed very late. Stock form was also not filed. Owing to this position, the turnover was determined at Rs. 12,45,500 in best judgment assessment. The total purchases liable to entry tax were determined at Rs. 10,69,500. This was assessed to entry tax at 2 per cent. The non-applicant claimed claimed tax-free deduction of niwar which was disallowed. Penalties were also imposed. The non-applicant filed appeal before the Appellate Deputy Commissioner of Sales Tax, Chhindwara, which was registered as No. 20/b/et/85. The non-applicant was unsuccessful. It then, filed Appeal No. 95-V/86 before the Tribunal. The appeal was partly allowed on August 16, 1988. The case was remanded to the assessing officer for fresh assessment. The total turnover was fixed at Rs. 12,43,694. 69 as shown in the books of accounts. Aggrieved, the applicant filed the application registered as No. 94-V/88 under section 44 (1) of the Act read with section 13 of the Entry Tax Act seeking statement of the case and reference of the question. On this application, the Tribunal referred the aforesaid question of law.

(3.) SHRI Mathur, submitted that best judgment assessment under section 18 (4) of the Act should necessarily mean enhancement in turnover in view of the provisions of rule 33 (3) made under the aforesaid Act.