JUGAL KISHORE RAMGOPAL Vs. STATE OF BIHAR

JUDGEMENT

(1.) In this case the assessee is a partnership firm called Jugal Kishore Ramgopal which carries on business in shellac and lac products. The assessee has a shellac manufacturing factory at Bilaspur which is located within the boundaries of the State of Bihar, but the main place of business of the assessee is at Murisemati which is at a distance of about a mile from Bilaspur and is located within the boundaries of Uttar Pradesh. On 29-12-1949 the Inspector of Sales Tax had gone to Bilasporo with the Assistant Superintendent of Sales Tax. The Inspector made enquiries at Bilaspur and also inspected the shellac factory and the stock of goods kept by the asses-see. The Inspector reached the inference that the firm was doing extensive business in shellac and oil-seeds as well as in foodgrain and 'bidi' leaves.

(2.) A notice on plain paper was given to the Agent of the firm, Sri Ram, to produce the accounts of the partnership business. A notice was also later on given to one of the partners, Raghunath Seth, to produce the accounts before the Sales Tax Officer. On 11-1-1950, an application for time was filed on behalf of the assessee. The Sales Tax Officer granted time, but on the adjourned date, that is, 31-1-1950, no one appeared on assessee's behalf. A registered post card was then sent to the partnership firm requiring it to produce the books of accounts. Finally, on 11-4-1950, the Sales Tax Officer issued a notice in Form XV, Bihar Sales Tax Rules requiring the assessee to produce his accounts, and intimating that in default a tax would be assessed to the best of judgment and a penalty would also be imposed under Section 13(5), Bihar Sales Tax Act.

(3.) The date fixed in the notice was 13-4-1950. On that date, no one appeared on behalf of the assessee and the Sales Tax Officer proceeded ex parte and made an assessment to the best of his judgment. For the period 1-7-1947 to 31-3-1948, the tax assessed was Rs. 2,679-11-0 and a penalty of an equal amount was also imposed upon the assessee under Section 13(5), Bihar Sales Tax Act. For the period from 1-4-1948 to 31-3-1949, the Sales-tax Officer imposed a tax of Rs. 6,890-10-0 and penalty of a similar amount was imposed upon the assessee, under Section 13(5). The order of assessment and of penalty for the two periods namely, from 1-7-1947 to 31-3-1948, and from 1-4-1948 to 31-3-1949, was passed by the Sales Tax Officer on the same date and by a single order.