Best judgment assessment cannot be implied for escaped turnover unless the tax statute expressly authorises it.

Section 16 of the Madras General Sales Tax Act, 1959 empowers assessment of escaped turnover after notice and enquiry, but it does not expressly authorise assessment by best judgment. The court held that such a power cannot be implied in a taxing statute, especially where the Act uses express language elsewhere when best judgment assessment is intended. Legislative history and the statutory scheme supported the view that the omission was deliberate. The escaped-turnover assessments based on assumed best-judgment power were quashed, though the assessing authority remained free to proceed afresh under section 16 in accordance with law.

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Issues: Whether section 16 of the Madras General Sales Tax Act, 1959 authorises the assessing authority to assess escaped turnover by best judgment.

Analysis: Section 16 deals with escaped turnover and turnover assessed at a lower rate. The provision confers power to assess tax on escaped turnover after notice and enquiry, but it does not in express terms authorise assessment by best judgment. The scheme of the Act shows that where the legislature intended to confer best judgment power, it said so expressly, as in the provisions governing initial assessment and provisional assessment. The legislative history, including the earlier statute and the amended rule making express provision for best judgment assessment of escaped turnover, supports the conclusion that the omission of similar words from section 16 was deliberate. In a taxing statute, such a power cannot be implied when the statute uses express language elsewhere for the same purpose.

Conclusion: Section 16(1) does not include the power to assess escaped turnover by best judgment. The assessment orders based on that assumed power were liable to be quashed.

Final Conclusion: The challenge to the escaped-turnover assessments succeeded, and the assessing authority was left free to proceed again under section 16 in accordance with the law as declared.

Ratio Decidendi: A power to make best judgment assessment in tax proceedings must be expressly conferred by statute and cannot be implied from a general power to assess escaped turnover.

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