1985 (7) TMI 341 - HC - VAT and Sales Tax

Summary

Issues:
1. Estimation of turnover based on suppression detected on a single day during a survey.
2. Calculation of interest under section 11-B of the Rajasthan Sales Tax Act, 1954.

Estimation of Turnover:
The Revenue filed a revision against the Tribunal's order, which affirmed the estimation of turnover at Rs. 20,000 based on a single day's suppression of Rs. 15,227. The High Court noted that the estimation of turnover on the basis of a single day's suppression is a factual determination, not raising any legal question. Consequently, the revision was dismissed with no costs.

Calculation of Interest under Section 11-B:
The Board of Revenue considered whether interest under section 11-B of the Act should be levied for completed months only or also for part of a month in case of default in tax payment. The Single Member held that interest should be calculated for completed months, excluding portions of a month. The Division Bench agreed and remanded the case for recalculation of interest accordingly. However, the department failed to challenge this finding before the Division Bench. When the department sought to raise the issue before the High Court, the Court upheld the respondent's objection, stating that the question was not raised or decided by the Division Bench. Consequently, the High Court dismissed the reference application, treating it as a revision petition, with no costs.

In conclusion, the High Court upheld the estimation of turnover based on suppression and clarified the calculation of interest under section 11-B, emphasizing that the department cannot raise new legal questions before the Court that were not raised or decided at the lower level.