Best judgment assessment of escaped turnover upheld where records were incomplete and material supported the Revenue's estimate.

Concurrent findings that the assessee failed to maintain proper books and that inter-State sales were not reflected in the records supported a best judgment assessment of escaped turnover under the Gujarat Value Added Tax Act, 2003. The Court noted that section 35 permits the Commissioner, after notice and inquiry, to determine tax due where turnover has escaped assessment or been under-assessed, and that the estimate was based on seized material, bills, challans and stock position. In the absence of perversity, breach of natural justice or other legal infirmity, the addition to turnover and resulting tax demand did not raise a substantial question of law. The Revenue's assessments were sustained.

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Issues: Whether the best judgment addition to turnover and the consequential tax demand under the Gujarat Value Added Tax Act, 2003 gave rise to any substantial question of law warranting interference.

Analysis: The authorities had concurrently found that the assessee had failed to maintain proper books and that inter-State sale transactions were not reflected in the records, while the seized material, bills, challans and stock position supported the Revenue's case. Section 35 of the Gujarat Value Added Tax Act, 2003 empowered the Commissioner, where turnover had escaped assessment or been under-assessed, to determine the tax due to the best of his judgment after notice and inquiry. In the absence of perversity, violation of natural justice, or any legal infirmity in the exercise of that power, the addition based on estimated escaped turnover could not be treated as capricious or as raising a substantial question of law.

Conclusion: The best judgment assessment and the resulting tax demands were upheld, and no substantial question of law arose.

Final Conclusion: The appeals failed and the Revenue's assessments were sustained on the strength of concurrent factual findings and the statutory power to assess escaped turnover to the best of judgment.

Ratio Decidendi: Where concurrent findings show escaped turnover and the assessment is made within the statutory framework after notice and inquiry, a best judgment estimate based on material on record does not raise a substantial question of law absent perversity or legal infirmity.

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