TaxTMI 
TaxTMI 
2010 (10) TMI 956
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....engaged in purchase and sale of ready-made garments and textiles in five shops at Trivandrum, one of which being the head office and the remaining being branches. The assessee was filing monthly returns declaring turnover and remitting tax on the taxable turnover under the KVAT Act for the year 2005-06. The audit wing of the Department conducted inspection on December 31, 2005 in all the shops and the finding is that except in one shop there was no physical stock of textiles in other shops and the stock of textile found in one shop was very low compared to the stock of ready-made garments available there. In other words, the audit wing found that the assessee's business was essentially in ready-made garments and very little business in text....
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....ority, against which this common revision is filed. First question raised by counsel for the assessee is that separate monthly assessments completed for each month of the financial year 2005-06 is against the mandatory provision of rule 39(5)(iv) of the KVAT Rules which provides that audit assessment made after the close of the year should be through a single order. Admittedly the assessments completed in this case is through separate orders for each month, the validity of which is confirmed by the Tribunal holding that the same has not caused any prejudice to the assessee. Further, the assessee does not appear to have raised any objection about the maintainability of monthly assessments while facing the assessment proceedings before the as....
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....ect the returns for such return periods and complete the assessment to the best of judgment after affording the dealer an opportunity of being heard. The procedure provided for audit assessment under section 24 abovestated is mandatory which requires enquiry and giving of opportunity to the dealer. In other words, before completing the assessment, the officer should conduct enquiry, issue notice containing proposal for assessment, give opportunity to the dealer to file reply and of hearing before passing the assessment order. Therefore, making of an assessment requires certain procedure and duration of time and so much so, in our view, the reference of the words "where the best judgment assessment is done" in rule 39(5)(iv) covers the entir....
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....see having not raised any objection against single assessment during the course of assessment, cannot raise a technical objection after monthly assessments are completed through separate orders. We, therefore, answer this question in favour of the Revenue by upholding the validity of separate assessments and rejecting the contentions of the assessee to the contrary. The next question raised is only on the estimation of turnover made by the assessing officer which is essentially bifurcation of taxable and non-taxable turnover based on findings of facts during inspection. We notice that the first appellate authority has granted substantial relief by treating 30 per cent of the turnover as non-taxable and retaining the assessment of turnove....