SHREECHAND Vs. COMMERCIAL TAXES OFFICER SPECIAL CIRCLE UDAIPUR

JUDGEMENT

(1.) THE petitioner's firm carried on the business of manufacturing and selling of rice at Udaipur. A survey was conducted at the premises of the petitioner's firm on April 17, 1984 and the provisional assessment under section 7b of the Sales Tax Act (hereinafter to be referred as "the Act"), was made. As a result of such survey additional tax and penalty as well as direction with the interest was given. THE provisional assessment was for the period November 4, 1983 to April 30, 1984, under the assessment year 1984-85. A regular first appeal was filed against the said provisional assessment order dated April 17, 1984 before the Deputy Commissioner (Appeals)-I, Commercial Taxes Department, Udaipur, who partially allowed the appeal by the order dated March 4, 1987 and granted some relief to the petitioner's firm.

(2.) AS only partial relief was granted to the petitioner firm, the matter was taken by the petitioner in the second appeal before the Rajasthan Sales Tax Tribunal (for short, "the Tribunal" hereinafter ). The Revenue also filed appeal aggrieved by the partial relief granted to the petitioner. These two cross appeals were dismissed by the Tribunal by its impugned order holding them to be infructuous as a final assessment order under section 10 (3) of the Act having been passed in the meanwhile for the period from November 4, 1983 to October 20, 1984, covering the period for which the provisional period of assessment was made.

(3.) READING the aforesaid provisions together would show that under the scheme of the Act, the primary responsibility of assessing the tax liability and paying tax in accordance with it has been imposed on the assessee. If the assessee fails to file the return and to pay tax in accordance with the provisions of section 7, section 7a applies and provisional assessment to the best of his judgment by the assessing authority can be made. Even this best judgment provisional assessment is subject to the provisions of sub-section (4) of section 7. That means the amounts paid under the provisional assessment are adjustable towards the tax dues which the assessee is held liable finally under section 10 of the Act. Similarly, when the assessee files a return and deposits the amount on the basis of his self-assessment under section 7 of the Act, but the assessing authority has reason to believe that the dealer has evaded or avoided the tax, he may resort to provisional assessment to the best of his judgment. This provisional best judgment assessment is again subject to the provisions of sub-section (4) of section 7 and therefore, any amount deposited by the assessee on the basis of the provisional assessment under section 7b of the Act is adjustable towards the liability which is finally imposed under section 10 while making the final assessment.