1974 (7) TMI 103 - HC - VAT and Sales Tax

Seizure of Account Books Not Automatic Grounds for Invalidating Assessment Orders

SG. Nadakattinavar Versus Commercial Tax Officer, II Circle, Hubli

The Court held that the mere seizure of account books does not automatically invalidate assessment orders, and prejudice must be proven on a case-by-case ... - Issues:1. Validity of assessment orders based on account books handed over by petitioner's clerk.2. Opportunity to inspect account books before assessment orders were passed.3. Prejudice caused by the seizure of account books.4. Right of the petitioner to file appeals against the assessment orders.Analysis:1. The petitioner, an assessee under the Karnataka Sales Tax Act, challenged assessment orders passed by the Commercial Tax Officer based on account books handed over by the petitioner's clerk in his absence. The Deputy Commissioner suspected certain turnovers had escaped assessment, leading to the issuance of a notice under section 12-A(1-A) to levy penalties. The petitioner contended that the books did not belong to him. The Court distinguished a previous case where the issue was lack of opportunity to explain entries in the books, emphasizing that in this case, the petitioner needed to prove the books did not belong to him. The Court held that the mere seizure of account books does not automatically invalidate an assessment order, and prejudice must be proven on a case-by-case basis.2. The petitioner's counsel argued that the assessment orders were void as the petitioner was not given an opportunity to inspect the account books before the assessment. However, the Court found that the petitioner failed to establish that the assessing authority's actions rendered the assessment orders null and void. The Court emphasized that the question of prejudice caused by the seizure of account books is a factual determination that must be assessed in each case individually.3. The Court noted that the petitioner had the right to appeal the assessment orders. The respondent stated that the account books had been returned to the petitioner, allowing him to file appeals before the appellate authority. The petitioner had not filed appeals as he had approached the Court under Article 226 of the Constitution. The Court granted the petitioner permission to file appeals within thirty days, directing the appellate authority to consider the appeals without limitations and dispose of them in accordance with the law. Consequently, the Court dismissed the writ petitions without costs.Overall, the Court held that the mere seizure of account books does not automatically invalidate assessment orders, and prejudice must be proven on a case-by-case basis. The petitioner was granted the right to file appeals against the assessment orders within thirty days, with the appellate authority instructed to consider the appeals without limitations.