TMI Blog1972 (6) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... t one Kalyanasundaram and also another clerk by name Velayudham. A surprise inspection of the residence of Kalyanasundaram was also made on the same date and some slips and pocketnote books were also recovered. Statements were taken from the said Kalyanasundaram as well as Velayudham at the time of the seizure of the slips and pocket-note books. In the statement given by Kalyanasundaram, he has admitted that the slips and anamath note books related to the transactions of the petitioner in goods other than salt. A similar statement was also made by the clerk Velayudham. Based on these slips and anamath note books recovered from the place of business of the petitioner as well as the residence of Kalyanasundaram, the assessing officer estimate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ace value as the veracity of the statements made in those affidavits had not been controverted by examination of the deponents of the affidavits. We are not in a position to accept the contention of the petitioner that the best judgment assessments made in respect of these two years cannot be justified on merits. It is not in dispute that the petitioner did not make any return in respect of the commodities said to have been covered by the slips and note books recovered as a result of surprise inspection. The petitioner's case that he was dealing only in salt and not in any other commodity has rightly been rejected by the authorities in view of the recoveries of the slips and note books from his place of business. It is also not established ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities below. Therefore, it is not possible for us to go into each of the entries in the slips and note books and find out whether the turnover as fixed by the authorities was properly determined. We, therefore, find that the turnover as determined by the assessing authority and confirmed by the Tribunal could not be challenged here on merits. Secondly, the learned counsel for the petitioner contends that the assessing authority has proceeded to assess the petitioner under section 12(2) of the Act on best judgment basis on the ground that no return has been submitted by him, that in a case where no return is submitted, the assessment should properly have been made under section 16 and, that therefore, the assessments made in these ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly on the ground that it purports to be an order under section 12. It is well-established that where the authority who passes the order has the requisite power, a mere reference to a wrong provision of law in the order will not invalidate the same. That is very well-settled in various decisions of the Supreme Court as well as of the High Courts. In this connection, we need refer only to two decisions of this court, one in Mariappa Nadar v. State of Madras[1960] 11 S.T.C. 215. and Oveekee Textiles v. Deputy Commercial Tax Officer[1971] 27 S.T.C. 439. Therefore, we have to find out whether the assessment orders passed in this case could be justified as having been passed under section 16. We find the power to assess escaped turnover under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht assume protean shapes. Under the Madras General Sales Tax Act, such ways and shapes are reflected in sections 12 and 16. Both the sections provide the machinery for the same purpose and vest the authority with the requisite power to act. If the import of sections 12 and 16 is thus understood, then the authority is not tied down to a particular section, if it notices the escapement of tax as is ordinarily understood. If an authority has the necessary power and particularly statutory power to deal with the subject and pass necessary orders which is only a faculty to decide legally, justly and truly, then an erroneous invitation to or quotation of a wrong provision of law in the notice whereunder the proceedings are initiated does not matte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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