Best judgment sales tax assessment based on seized stock materials will stand absent legal or jurisdictional error

Revision under the Kerala General Sales Tax Act, 1963 is confined to correcting legal or jurisdictional error, and estimated turnover based on best judgment will ordinarily not be disturbed where the Tribunal has made final factual findings. After rejection of accounts and compounding of the related accounts offence, the sales tax authorities relied on running stock and the seizure of gold, jewellery, primary gold and gold coins from a partner's residence to support the assessment. Those materials were treated as a proper factual basis for the stock estimate, and no basis was found to interfere with the assessment or turnover estimation.

---

---

Issues: Whether interference was warranted in revision with the best judgment assessment based on running stock and whether the seized gold and related circumstances could be treated as a proper basis for the sales tax assessment.

Analysis: The accounts had been rejected and the assessment proceeded on best judgment after the offence relating to maintenance of accounts was compounded. In revision, the Court confined itself to the limited scope available under section 41 of the Kerala General Sales Tax Act, 1963, and treated the Tribunal as the final fact-finding authority. On the materials, the seizure of gold, jewellery, primary gold and gold coins from the partner's residence, together with the connected facts, supported the factual findings of the sales tax authorities. The Court found no error in the treatment of the seized materials and no basis to disturb the estimate of running stock made by the authorities.

Conclusion: No interference was called for with the best judgment assessment or the estimation of turnover; the issue was decided against the assessee and in favour of the Revenue.

Ratio Decidendi: In revision, estimated turnover based on best judgment assessment will not be interfered with unless a legal or jurisdictional error is shown, and concurrent factual findings of the taxing authorities will ordinarily attain finality.

---