Retrospective tax amendment permits reassessment, with dealer bearing burden to prove no tax was collected before relief applies

A retrospective fiscal amendment was applied to pending rectification proceedings under the Mysore Sales Tax Rules, 1957, because the amended law governed whether there was a mistake apparent on the record. The dealer could obtain relief only if the conditions in section 10(1) were satisfied, and section 10(2) placed the burden on the dealer to prove that no tax had been collected. The assessing authorities were competent to reopen the assessments, but they had to give the dealer a reasonable opportunity to discharge that burden before reassessment. The writ challenge to reopening failed, and the appeals succeeded.

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Issues: Whether assessments could be rectified under rule 38 of the Mysore Sales Tax Rules, 1957, read with section 10 of the Central Sales Tax (Amendment) Act, 1969, on the basis of the retrospective amendment and the dealer's burden to prove that no tax had been collected.

Analysis: The retrospective amendment altered the legal position governing inter-State sales and had to be applied to pending rectification proceedings. For determining whether there was a mistake apparent on the record, the assessing authority had to look to the amended law. Section 10(1) relieved dealers from liability only where the conditions stated therein were satisfied, and section 10(2) placed the burden on the dealer to prove that no tax had been collected. The authorities were entitled to reopen the assessments, but before reassessment they were required to afford the dealer a reasonable opportunity to discharge that burden. The factual finding that tax had not been collected was not open to interference in writ jurisdiction.

Conclusion: The rectification proceedings were valid in law, subject to giving the dealer a reasonable opportunity to prove compliance with section 10(1) and section 10(2); the challenge to reopening failed.

Final Conclusion: The appeals succeeded, the writ petitions were dismissed, and the assessing authorities were held competent to proceed under the amended law.

Ratio Decidendi: Where a retrospective fiscal amendment creates a conditional relief and places the burden on the dealer to prove entitlement to that relief, the assessing authority may rectify or reopen the assessment under the relevant procedural rule, provided a reasonable opportunity is given to discharge that burden.

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