9911796707
TMI Blog2024 (6) TMI 998X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of Assessing Authority imposing tax, interest and penalty against the petitioner on 23.9.1999 in exercise of the power under Section 29(7) (f) of the Act. 2. Section 29 of the Rajasthan Sales Tax Act, 1994 relates to assessment and sub-section (7) whereof reads as follows :- "(7) The assessing authority after affording an opportunity of being heard, shall assess a dealer to the best of its judgement and determine the tax payable by him, if such dealer[ (a) has not filed all or any of the returns due for a year; or (b) has filed any return or returns which appear to the assessing authority incomplete or incorrect; or (c) has failed to comply with all the terms of a notice issued under sub-section (5); or (d) has not r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is cancelled. Sometimes before supply of goods due to recession of price the deal is cancelled and on many occasion due to unprecedented escalation of price deal does not materalise. Once deal is materialised, such deals are entered into sale/ purchase registers. The C.T.O. has noted the name of Dealers with whom 'sauda' was made but none of the Dealers were verified as to whether any actual sale had taken place and in absence of direct evidence of 'sale', there is no liability for tax. The petitioner stated that he is a manufacturer and consumption of electricity since last three years would show no major variation, which goes to show that no more production was made than mentioned, therefore, there was no question of excess manufacturing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iz. (1) by adducing satisfactory proof to the effect that the place from which the secret books of account were seized formed part of the place of business of the respondents or was in their exclusive possession and control, (2) that the secret books of account were maintained by or Under the orders of the respondents, (3) that the said books of account were in the handwriting of either of the respondents or their accountant, or clerk or some other person employed by them." In the case on hand, it was not verified from the businessmen named in the "Sauda Noon Register" as to whether actually any transaction of sale has taken place nor any other satisfactory report/ evidence was there to substantiate case of tax evasion. Evidently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with law, was bound to examine each individual transaction and then decide whether it constituted an inter-State sale exigible to tax under the provisions of the Act." 7. Coming to the facts of this case, it is evident that the Assessing Authority did not enquire about correctness of averments made in reply to the notice by the petitioner. In other words it was not verified that the entries in the Saudanoon Register were genuinely a sale transaction. A due enquiry might have given a different result and in absence of enquiry, correctness of the conclusion is not sustainable. 8. The learned Tax Board has not considered this legal infirmity committed by the Assessing Authority while upsetting the reasoned order of the appellate court, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y evidence on record, therefore, is not acceptable and fit to be quashed. The initial order imposing tax, penalty etc., dated 23.03.1999 reveals that the Commercial Taxes Officer had asked the petitioner to deposit Rs. 5 Lacs for compounding. Later on the compounding failed. The Tax Board assumed that since the petitioner had deposited Rs. 5 Lacs, the petitioner admitted evasion of tax. 12. Learned counsel for the petitioner rightly submits that if the petitioner deposited Rs. 5 Lacs on being asked by the Department, just to purchase peace, it cannot be said in absence of proof that the act of the petitioner amounted to admission of evasion of tax. This Court finds substance in the submission for the simple reason that even the Commercial ..... X X X X Extracts X X X X X X X X Extracts X X X X
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