Page 155 - GSTL_18th June 2020_Vol 37_Part 3

2020 ] IN RE : OMSAI PROFESSIONAL DETECTIVE AND SECURITY SERVICES PVT. LTD. 369
passed by the A.A., and after thorough verification of records, the following find-
ings are recorded;
(1) Regarding the levy of tax of Rs. 3.43.96.432/- :
A basic perusal of A.A’s order reveals that the findings on the turn-
overs are not based on analytical and exhaustive scrutiny. The pal-
pably pointing out certain anomalies, which are discussed hereun-
der :-
Firstly, the A.A has chosen to determine the turnovers on his best
judgment and presumes the suppression of outward taxable sup-
plies by the appellant on mere guess work. He has not conducted
any worthy verifications or elaborate enquiries. We have to read
and comprehend that Section 62 thoroughly before analyzing the
present issue. Hence Section 62(1) of the Act, is abstracted here-
under :-
Section 62. (1)
“Notwithstanding anything to the contrary contained in
section 73 or section 74, where a registered person fails to
furnish the return under section 39 or section 45, even af-
ter the service of a notice under section 46, the proper of-
ficer may proceed to assess the tax liability of the said
person to the best of his judgement taking into account all
the relevant material which is available or which he has gath-
ered and issue an assessment order within a period of five
years from the date specified under section 44 for fur-
nishing of the annual return for the financial year to
which the tax not paid relates”.
A fundamental comprehension of above Section obviously makes
it perceivable that the best judgment assessment to be passed by
any authority shall be based on taking into account of all the rele-
vant material, which is available or which may be gathered by
such assessing authority. But, the impugned finding does not
speak of any material collected by the A.A, nor mentions any en-
quiries which establish the assumed turnover by the A.A. In such
circumstances, it is to be held that the A.A has not followed basic
instructions read between in the contents of Section 62(1), hence
not qualifies to be upheld as bona fide.
In this connection, the following case laws are to be taken into
consideration before commenting on the A.A’s best judgment or-
ders.
(i) State of Orissa v. B.P. Singh Deo (1970) 76 ITR 690 -
AIR SC 670) (SC).
In this case, the Hon’ble Supreme Court held that the
power to levy assessment on the best of judgment basis is
not an arbitrary power, but such assessment must be
based on best judgment or on relevant material. It is not a
power that can be exercised on the sweet will and pleasure of
the concerned authorities.
(ii) State of A.P. v. Ravuri Narasimhulu (1965) (16 STC 54)
(APHC)
GST LAW TIMES  18th June 2020  155