Best judgment reassessment is permissible under Orissa sales tax law where turnover suppression and rejected books justify estimation.

Reassessment under section 12(8) of the Orissa Sales Tax Act follows the procedure in section 12(5), including notice, hearing and assessment to the assessing officer's best judgment. Where escaped turnover is found because of suppression and the books are rejected, the authority is not limited to adding only the exact amount detected; it may make a reasonable estimate on the material available. The commentary states that this best judgment approach is available even if the original assessment was also made on best judgment.

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Issues: Whether, in a proceeding under section 12(8) of the Orissa Sales Tax Act, there is scope for best judgment assessment.

Analysis: Section 12(8) requires reassessment to be made in the manner laid down in section 12(5). That incorporated procedure includes notice, opportunity of hearing, and assessment to the best of the assessing officer's judgment. Where escaped turnover is detected on account of suppression and the books are rejected, the assessing authority is not confined merely to adding the exact amount detected; it may form a reasonable estimate on the material before it. The statutory scheme and the authorities considered support the view that reassessment proceedings under section 12(8) can proceed on best judgment basis, even if the original assessment had also been made on best judgment.

Conclusion: Best judgment assessment is permissible in a proceeding under section 12(8) of the Orissa Sales Tax Act, and the issue is answered in favour of the Revenue.

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