Revisional jurisdiction in sales tax permits reassessment notice based on later legal view of the correct tax rate.

The revisional power under section 40 of the Haryana General Sales Tax Act, 1973 read with section 9(2) of the Central Sales Tax Act, 1956 permits the Commissioner to call for the record of an assessment and examine its legality or propriety. The provision is not restricted merely because the original assessment followed the law as then understood, or because revision is triggered by a later judicial view on the correct tax rate. A notice issued on that statutory basis is valid if it discloses the ground for action and satisfies the conditions precedent. On that reasoning, the revisional authority had jurisdiction to issue notice on the tax treatment of surgical cotton.

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Issues: Whether the revisional authority had jurisdiction under section 40 of the Haryana General Sales Tax Act, 1973 read with section 9(2) of the Central Sales Tax Act, 1956 to issue a notice revising assessment orders on the basis that surgical cotton ought to have been taxed at a higher rate.

Analysis: The power of revision under section 40 is wide and enables the Commissioner to call for the record of a case disposed of by an assessing authority for satisfying himself as to the legality or propriety of the order made therein. On the plain language of the provision, there is no fetter preventing revision merely because the assessment was made in accordance with the law as understood earlier or because the revision is prompted by a later judicial view on the correct rate of tax. The impugned notice disclosed the statutory basis for action and did not suffer from inherent lack of jurisdiction or failure to satisfy any condition precedent.

Conclusion: The revisional authority had jurisdiction to issue the notice, and interference with the notice by the High Court was unwarranted.

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