STATE OF KERALA vs SHRI M. APPUKUTTY

The Supreme Court held that the Deputy Commissioner of Commercial Taxes has the authority to assess escaped turnover under Rule 17(3A) of the Madras General Sales Tax Rules, framed under Section 19 of the Madras General Sales Tax Act, 1939. The Court clarified that the Deputy Commissioner is not limited to the existing evidence on record when determining escaped turnover, and that Section 9 does not pertain to escaped turnover assessments. The notice issued by the Deputy Commissioner was deemed valid and not ultra vires, thus overturning the High Court's decision.