IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT:- THE HONOURABLE THE CHIEF JUSTICE MR.H.L.DATTU & THE HONOURABLE MR. JUSTICE A.K.BASHEER WEDNESDAY, THE 18TH JUNE 2008 / 28TH JYAISHTA 1930 S.T.Rev.No.67 of 2006 ------------------------------ T.A.NO.946 OF 2003 OF THE KERALA SALES TAX APPELLATE TRIBUNAL, ADDITIONAL BENCH, PALAKKAD. (ASSESSMENT YEAR 1998-99) .................... REVISION PETITIONER/ASSESSEE:- ------------------------------------------------- K.P. DAVIS, PROPRIETOR, HOTEL VICTORY INTERNATIONAL, KUNNAMKULAM. BY ADV. SRI.S.SOMAN RESPONDENT: REVENUE:- ------------------------------------- STATE OF KERALA, REPRESENTED BY ITS CHIEF SECRETARY, SECRETARIAT, THIRUVANANTHAPURAM. BY SPECIAL GOVERNMENT PLEADER SRI.VINOD CHANDRAN. THIS SALES TAX REVISION HAVING BEEN FINALLY HEARD ON 18/06/2008, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: H.L.Dattu,C.J. & A.K.Basheer,J. -------------------------------------------- S.T.Rev.No.67 of 2006 ------------------------------------------- Dated, this the 18th day of June, 2008 ORDER H.L.Dattu,C.J. The petitioner is running a Bar attached Hotel. He has registered himself as dealer both under the provisions of the Kerala General Sales Act, 1963 (“K.G.S.T.Act” for short) and Central Sales Tax Act, 1956 (“C.S.T.Act” for short). He was borne on the files of the Assistant Commissioner (Assessment), Commercial Taxes, Special Circle, Thrissur. 2. The petitioner has filed his annual returns for the assessment year 1998-99 and in that, apart from others, he had conceded the sale of cooked food in a sum of Rs.13,63,874/-, though the actual purchase of the cost of consumables was in a sum of Rs.11,92,458 and the cost of firewood, etc. in a sum of Rs.1,15,105.75. The assessing authority being of the opinion that the return so filed by the petitioner is untrue and incorrect, had rejected the same and had proceeded to complete the assessments by best judgment assessment and in that had made an addition of 165% to the conceded turnover on the sale of cooked food. 3. In the appeal filed, the appellate authority has modified the estimation made by the assessing authority in so far as the cooked food is concerned and the same is reduced to 150% . This estimation by S.T.Rev.67/2006 - 2 - the first appellate authority is confirmed by the Tribunal. 4. This is the best judgment assessment based on estimation. This best judgment assessment cannot be substituted by us in exercise of our powers under Section 41 of the K.G.S.T.Act. The law on the point is now well settled. The apex Court in the case of Commissioner of Sales Tax v.H.M.Esufali H.M.Abdulali [(1973) 32 STC 77] has observed as under: “In estimating any escaped turnover, it is inevitable that there is some guess-work. The assessing authority while making the best judgment assessment, no doubt, should arrive at his conclusion without any bias and on a rational basis. That authority should not be vindictive or capricious. If the estimate made by the assessing authority is a bona fide estimate and is based on a rational basis, the fact that there is no good proof in support of that estimate is immaterial. Prima facie, the assessing authority is the best judge of the situation. It is his best judgment and not anyone else's. The High Court cannot substitute its best judgment for that of the assessing authority”. 5. The parameters of the revisional jurisdiction of this Court is very much limited. This can be only on two circumstances - firstly, if the Tribunal has decided erroneously, and, secondly, has failed to decide any question of law. S.T.Rev.67/2006 - 3 - 6. In the instant case, since the assessment is made purely on estimation basis and that estimation can by no stretch of imagination be characterised as arbitrary, illegal, irregular, improper or capricious, we need not have to upset the factual findings of the Tribunal. Therefore, the revision petition requires to be rejected and it is rejected and the questions of law framed by the assessee are answered against the assessee and in favour of the Revenue. 7. I.A.No.805 of 2006 is dismissed. Ordered accordingly. H.L.Dattu Chief Justice A.K.Basheer Judge vku/DK