Best judgment sales tax assessment and writ restraint where statutory appellate remedies were available

A best judgment sales tax assessment under Section 11(1) of the Bengal Finance (Sales Tax) Act, 1941 had to rest on relevant material and be preceded by a reasonable opportunity of hearing. The assessment was described as arbitrary, insufficiently reasoned, and made without proper consideration of prior assessments or a fair hearing. Even so, the High Court noted that the Act provided complete appellate and revisional remedies, which the dealer had not pursued with due diligence. Because the assessment was erroneous but not without jurisdiction, Article 226 relief was held inappropriate where the statutory remedy had not been exhausted.

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Issues: Whether the High Court should interfere under Article 226 with a best judgment sales tax assessment when an alternative statutory remedy existed and the assessment authority had jurisdiction.

Analysis: Section 11(1) of the Bengal Finance (Sales Tax) Act, 1941, required a best judgment assessment to be made on relevant material and after giving the dealer a reasonable opportunity of being heard. The assessment made in the case was found to be arbitrary and unsupported by adequate reasons, and the authority did not properly consider prior assessments or afford a fair hearing. However, the Act also provided a complete and adequate appellate and revisional machinery. The petitioner had not availed that remedy with due diligence, and the impugned assessment, though erroneous, was not without jurisdiction. In such circumstances, the discretionary writ jurisdiction under Article 226 was not to be invoked to bypass the statutory scheme.

Conclusion: The petitioner was not entitled to writ relief, and the High Court declined to interfere with the assessment.

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