KUNDAN LAL Vs. STATE OF HARYANA

JUDGEMENT

(1.) THE petitioner states that he is a petty karyana merchant at Faridabad. The Assessing Authority, Faridabad, respondent No. 4, under the Haryana General Sales Tax Act, 1973 (for short "the Act") raided his business premises on 20th December, 1978 and seized 12 exercise books. Under Section 36 of the Act respondent No. 4 was required to return these exercise books to the petitioner within a period of 60 days from the date of seizure. However, in spite of repeated requests by the petitioner the same were not returned to him. Instead respondent No. 4 issued him a notice, annexure P/3, dated 21st May, 1979 stating that on scrutiny of the account books (exercise books according to the petitioner) seized from his possession on 20th December, 1978 it transpired that he had effected credit sale of Rs. 3,15,760. 00 during the year 1976-77 and sales on credit to the tune of Rs. 3,50,000. 00 during the year 1977-78. As per the prevalent practice in commercial circles of the type, credit sales account for 50 per cent of the entire transaction, at the most, and hence the gross turnover for the years 1976-77, 1977-78 and 1978-79 was proposed to be determined as below: 1976-77 Rs. 6,40,000. 00 1977-78 Rs. 7,00,000. 00 1978-79. Rs. 5,50,000. 00

(2.) THE petitioner was required to appear for final hearing of the case before respondent No. 4 on 24th May, 1979. The petitioner submitted his replies annexure P/4 and annexure P/5 dated 25th May, 1979 and 29th May, 1979. In the former he explained that since the seized books had not been returned to him he could not understand on what basis the calculation of gross turnover had been made stating further that most of the allegations made in the notice annexure P/3 were fake. In the latter reply he made a specific request once again for return of the exercise books seized on 20th December, 1978.

(3.) RESPONDENT No. 4 passed a best judgment assessment order annexure P/6 on 15th June, 1979. It is stated therein that the petitioner had raised objections regarding delay in return of the seized exercise books to him. Non-return of the exercise books was justified on the ground that the assessee was required to attest the entries and to make a statement regarding the same and then only the matter of return of exercise books could be considered. The assessee, however, did not co-operate in the matter. This led to the delay in getting the approval of the Excise and Taxation Commissioner (for short "the Commissioner") for retention of the exercise books till finalisation of the assessment and the appeal as a result of the best judgment assessment. The total amount of sales tax due from the petitioner was worked out to be Rs. 26,478. 00 and a demand notice for payment of this amount was issued to him.