Reopening of sales tax assessment must follow section 16 procedure; reassessment under section 12(1-A) cannot rest on a provisional assumption.

Section 12 of the Tamil Nadu General Sales Tax Act, 1959 permits either acceptance of a return under section 12(1) or scrutiny assessment under section 12(1-A), but not a provisional final assessment. Once assessment is completed under either provision, reopening must proceed under section 16 on valid grounds, with notice to the assessee, examination of accounts, and a reasonable opportunity to respond. An order treating the earlier assessment as provisional and making additions without following this procedure was unsustainable. The reassessment under section 12(1-A) was set aside, and the matter was remitted to the assessing authority for fresh action under section 16 after allowing production of records and objections.

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Issues: Whether an assessment initially accepted under section 12(1) of the Tamil Nadu General Sales Tax Act, 1959 could be reopened and completed under section 12(1-A) on the footing that the earlier order was only provisional, and whether the impugned assessment order was liable to be set aside and the matter remitted for fresh consideration under section 16.

Analysis: Section 12 contemplates either acceptance of the return under section 12(1) or a detailed scrutiny assessment under section 12(1-A); it does not contemplate a provisional final assessment. Once an assessment is made under either sub-section, reopening can be done only under section 16 for valid reasons and after informing the assessee, examining the accounts, and granting a reasonable opportunity. The impugned order proceeded on an erroneous assumption that the assessment could be treated as a best judgment assessment under section 12(1-A), and the addition made without following the proper procedure could not stand.

Conclusion: The reassessment under section 12(1-A) was unsustainable, the impugned order was set aside, and the matter was remitted to the assessing authority for fresh action under section 16 after giving the assessee an opportunity to produce records and objections.

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