Best judgment assessment and registration penalty upheld where taxable liability arose and no explanation for non-registration was given

Once the taxable quantum had been reached and sales tax liability had arisen under the Bengal Finance (Sales Tax) Act, 1941, registration became mandatory. The Commercial Tax Officer was entitled to proceed with a best judgment assessment when the assessee failed to appear to the Form VI notice and gave no objection or explanation, and the order was not invalid merely because it referred to earlier recorded findings. The absence of any reasonable explanation for failure to register also satisfied the statutory basis for penalty. The assessment order and penalty were therefore upheld as valid.

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Issues: Whether the assessment order and the penalty imposed for failure to obtain registration under the Bengal Finance (Sales Tax) Act, 1941, were valid.

Analysis: The taxable quantum had been reached, and under the Act sales tax became payable after the prescribed period. Once liability to pay tax arose, registration was required. The assessee did not appear in response to the notice in Form VI and offered no objection or explanation. In those circumstances, the Commercial Tax Officer was entitled to make a best judgment assessment on the materials available to him, including his earlier recorded findings. The reference to the prior finding in the assessment order did not render the order invalid. Since the assessee furnished no reasonable explanation for failure to register, the statutory conditions for penalty were also satisfied.

Conclusion: The assessment order and the penalty were upheld as valid, and the challenge failed.

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