R.K. Vijayvargiya, J.
1. This petition under articles 226 and 227 of the Constitution is directed against the order dated 31st August, 1978 (annexure A), passed by the Sales Tax Officer, Indore Circle No. 3, in case No. 20/73-74 which was confirmed by the order dated 21st July, 1979 (annexure C) passed by the Divisional Deputy Commissioner of Sales Tax, Ujjain Division, Ujjain, in revision No. 6/78-79.
2. The facts giving rise to this petition briefly stated are as follows : The petitioners are registered dealers under the provisions of the M. P. General Sales Tax Act, 1958 (hereinafter referred to as the Act). The petitioners were assessed to sales tax for their turnover during the period between 7th November, 1972, and 25th October, 1973. As the accounts produced by the petitioners were not held reliable the Sales Tax Officer assessed them to the best of his judgment. The Sales Tax Officer determined the gross turnover of the petitioners at Rs. 17,95,000 and assessed the petitioners on that basis after allowing the deductions according to law. Aggrieved by the assessment order the petitioners submitted a revision petition which has been dismissed. The petitioners have assailed the order of assessment in this petition.
3. The learned counsel for the petitioners contended that the determination of the turnover of the petitioners by the Sales Tax Officer is without any rational basis and is purely arbitrary and therefore it deserves to be quashed. This contention of the learned counsel for the petitioners is well-founded. The Sales Tax Officer did not arrive at any conclusion in regard to the quantity of the groundnut oil sold by the petitioners during the relevant period. The Sales Tax Officer came to the conclusion that the turnover of the groundnut oil was 3.5 times more than the sale of the oil-cakes because from the record it was found that the average sale price of oil-cakes was Rs. 150 per quintal while the average sale price of groundnut oil was Rs. 550 per quintal. According to the Sales Tax Officer as the sale price of groundnut oil was 350 per cent more than the average sale price of oil-cakes the turnover of the groundnut oil should be computed at 350 per cent of the sale price of oil-cakes. The basis adopted by the Sales Tax Officer is purely arbitrary because there is no material on record regarding the proportion of the oil and oil-cakes as the products of groundnut when it is crushed. The Sales Tax Officer has not found nor there is any material on record that the oil and oil-cakes are produced in equal quantity. Only in that event the basis adopted by the Sales Tax Officer can be sustained. In the absence of any material on record regarding the proportion of the oil and oilcakes as the products of the groundnut the basis adopted by the Sales Tax Officer in computing the turnover of the groundnut oil is purely arbitrary and cannot be sustained in law. In the circumstances the assessment made by the Sales Tax Officer deserves to be set aside. The Sales Tax Officer would be at liberty to reassess the petitioners in accordance with law.
4. As a result of ,the discussion aforesaid this petition is allowed. The orders dated 31st August, 1978 (annexure A), passed by the Sales Tax Officer, Indore Circle No. 3, and dated 21st July, 1979 (annexure C), passed by the Divisional Deputy Commissioner of Sales Tax, Ujjain Division, Ujjain, are quashed. In the circumstances the parties shall bear their own costs of this petition. The outstanding amount of security deposit be refunded to the petitioners after verification.