TMI Blog2002 (9) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... accompanied by the treasury challan showing the payment of sales tax on the turnover shown by him in his return, but the assessing authority, respondent No. 4, made the assessment only on May 30, 1987 and that was also a "best judgment assessment" passed by him. The petitioner furnished return showing the turnover of Rs. 1,39,232.50 being accompanied by treasury challan showing the payment of tax on the said turnover, but the assessing authority in 1987 took up the assessment and applying the principle of "best judgment assessment" calculated the turnover of the petitioner at Rs. 2,19,628 and assessed the sales tax to the tune of Rs. 21,962.80 and imposed penalty of Rs. 4,392.40. The petitioner being aggrieved, preferred appeal which was di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . III. Civil Rule No. 125 of 1994: For the assessment year 1985-86 the petitioner furnished the return in due time showing the turnover of Rs. 1,05,000 and the return was accompanied by the treasury challan showing payment of sales tax on the said amount, but the assessing authority after one year took up the matter of assessment and vide impugned order dated May 30, 1987 assessed the turnover of the petitioner's business at Rs. 11,17,556 and assessed the tax at Rs. 1,11,755 and imposed a penalty of Rs. 22,351.12. The petitioner preferred appeal followed by revision, but got no relief. Hence he filed this case. The respondents took the plea identical to the first case (Civil Rule No. 123 of 1994). 2.. Heard Mr. S.C. Saha, learned co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued by the assessing authority on the doubtful return, the authority shall pass an order assessing the turnover and tax thereof to the best of his judgment, but in the present case, since the assessing authority took up the exercise of assessment in the first case after three years, in the second case after two years and in the third case after one year of furnishing the returns by the dealerassessee, the entire order of assessment, passed by the assessing authority on "best judgment assessment" stood vitiated. 5.. To controvert, Mr. Saha, learned Senior Government Advocate appearing on behalf of the respondents submits that though the language of section 9 of the Tripura Sales Tax Act, 1976 postulates assessment to be done at the clo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars and in the third case after one year though the provision of section 9(1) of the Tripura Sales Tax Act, 1976 provides for making of assessment "at the close of a year or at the closure of the business during that year". (emphasis supplied). 8.. On examination of section 9 of the Tripura Sales Tax Act, 1976, I am convinced to hold that delay in assessing the tax per se will not render the assessment vitiated, but what in my considered opinion, the correct interpretation, is that in any delayed assessment of tax on the basis of turnover submitted by a dealer, the dealer Here italicised. cannot be held responsible to pay interest on the enhanced amount of tax assessed by the authority unless delay is attributable to the dealer-assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty is to allow the assessee-dealer an opportunity of being heard on the materials proposed to be used by him. In the present case, the assessing authority having relied upon the "prevailing market rate" of bricks arrived to his own conclusion, but before doing it the authority has not issued any notice asking the petitioner to show cause as to why "the prevailing market rate" with a definite figure should not be relied upon in exercising the "best judgment assessment". 11.. Mr. Saha, learned Senior Government Advocate appearing for the respondents, placed much emphasis on a decision of the honourable apex Court in Commissioner of Sales Tax, Madhya Pradesh v. H.M. Esufali H.M. Adbulali, Siyaganj, Main Road, Indore reported in [1973] 32 STC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplied to that case on the basis of "admitted escaped turnover" of the assessee and as such, in my considered opinion, the ratio of the aforesaid case as has been sought to be relied upon by the learned Senior Government Advocate has no application in the present case. 12.. Under the aforesaid circumstances, I am constrained to hold that in case of delayed assessment done by the assessing authority despite the dealer furnished returns in time, the dealerassessee cannot be held liable for the payment of interest over the enhanced amount of tax assessed by the authority for the intervening period between the date of submission of return and the date of assessment. I am further led to hold that in adopting the "best judgment assessment" pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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