BACHHRAJ BAID Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) This rule is directed against an order of best judgment assessment dated 23rd February, 1975, made by the Commercial Tax Officer, Lyons Range Charge, with respect to the petitioners' business known as Messrs. Eastern Trading Company.

(2.) The petitioners and one Sm. Kankanwari Baid were the partners of M/s. Eastern Trading Co., a partnership-firm registered under the Indian Partnership Act and ? the said firm carried on business of selling various articles of luxury goods and also used to give the said articles on hire under hire-purchase agreement. The other partner, Sm. Kankanwari Baid died on 9th May, 1978. The petitioners are registered as dealers both under the Bengal Finance (Sales Tax) Act, 1941, and the Central Sales Tax Act, 1956. For the four quarters ending on 31st December, 1973, the petitioners could not submit returns for the 1st quarter ended on 31st March, 1973, within due time, i. e., 30th April, 1973. Thereafter on 8th August, 1973, the petitioners submitted the return for the second quarter ended on 30th June, 1973, showing a gross turnover of Rs. 8,55,511.63 and claiming deduction on account of delivery, discount, etc., under the relevant provisions of the Bengal (Finance) Sales Tax Act, 1941. Respondent No. 1, before the ending of the fourth quarter on 31st December, 1973, issued a notice in form VI on 8th November, 1973, fixing the date of hearing of the assessment. In January, 1974, the petitioners appeared before respondent No. 1 and asked for adjournment as they could not submit the return for the third quarter ending on 30th September, 1973, and could not make the accounts ready with detailed statement of cash sales and hire-purchase sales on completed basis. Moreover on account of a fire break-out causing serious damages to the books of account, the petitioners could not produce the books of account on 9th February, 1974. The petitioners asked for further time but their prayer was disallowed. Thereafter for the quarter ending September, 1973, respondent No. 1 estimated the gross turnover at Rs. 34,00,000. Respondent No. 1 thereafter filed a certificate being certificate No. 279-ST (LR) 74-75 in the office of the Certificate Officer, 24-Parganas, for the non-payment of taxes and penalty for 4 quarters ending on 30th September, 1973. In execution of the distress warrant against the firm, Messrs. Eastern Trading Company, the movable properties of the petitioners as well as the bank accounts of the petitioners, were attached. The petitioners being aggrieved moved this court in an application under Article 226 of the Constitution and obtained the present rule.

(3.) Dr. Pal, appearing on behalf of the petitioners, contended that' the gross turnover was estimated at Rs. 34,00,000 on mere surmise, suspicion and conjecture. The assessing authority did not conform to the requirement of law and there was no material and/or basis in estimating such gross turnover. It is further contended that no opportunity was given to the petitioners and there has been violation of the principles of natural justice.