Non-compliance with assessment notice under sales tax law brings the assessment within the best-judgment provision

Non-compliance with a section 11(2) notice under the Punjab General Sales Tax Act can justify treatment of the assessment as one made under section 11(4). The notice required the dealer to attend, produce accounts and documents, and raise objections with evidence; the record showed only partial compliance, not full compliance with those requirements. On that basis, the assessment order dated 24 July 1961 was held to fall within section 11(4), and the question was answered in the negative in favour of the assessee.

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Issues: Whether the assessment order dated 24 July 1961 was made under section 11(4) of the Punjab General Sales Tax Act, 1948, on account of non-compliance with the notice issued under section 11(2).

Analysis: The notice under section 11(2) required the dealer to attend, produce accounts and documents, and avail the opportunity to raise objections and adduce evidence. The finding recorded showed that the dealer complied fully with only part of those requirements and did not fully comply with the notice. On that basis, the assessment could not be treated as one made after full compliance with section 11(2), and it fell within the ambit of section 11(4).

Conclusion: The assessment order was an order under section 11(4), and the question was answered in the negative, in favour of the assessee.

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