Best judgment sales tax assessment and penalty upheld where return was filed only after inspection.

Turnover determined from material found during inspection supported a best judgment assessment, because a later return showing the same figure did not convert it into an assessment made on acceptance of the return. Section 14(3) of the Andhra Pradesh General Sales Tax Act, 1957 was applied to permit both best judgment assessment and penalty where the dealer failed to file the return in time or filed it only after inspection. On those facts, the assessment was valid and penalty was leviable.

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Issues: Whether the assessment was a best judgment assessment and whether penalty could be levied under section 14(3) of the Andhra Pradesh General Sales Tax Act, 1957.

Analysis: The turnover was determined from the material discovered during inspection. The fact that the return filed later disclosed the same figure did not convert the assessment into one made on acceptance of the return. Section 14(3) empowered the assessing authority to make a best judgment assessment and to impose penalty where the dealer had failed to file the return in time or filed it after inspection. The facts satisfied those conditions.

Conclusion: The assessment was valid as a best judgment assessment and the penalty was leviable.

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