Rectification jurisdiction over appellate exemptions rests with the appellate authority, not the assessing authority.

Where an exemption had been granted in appellate proceedings, the assessing authority lacked jurisdiction to rectify the assessment under rule 38 so as to bring the turnover back to tax after the Central Sales Tax (Amendment) Act, 1969. The power to correct or reverse that appellate exemption lay with the appellate authority, not the assessing authority. The impugned rectification notices were therefore unsustainable and were quashed, with liberty to the appellate authority to take appropriate action if warranted.

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Issues: Whether the assessing authority could rectify assessment orders to bring to tax turnover earlier exempted by the appellate authority after the Central Sales Tax (Amendment) Act, 1969.

Analysis: The notices sought rectification of assessment orders under rule 38 in respect of exemptions that had already been granted by the appellate authority in appeal. The Court held that, where the exemption had been allowed in appellate proceedings, the assessing authority had no competence to effect rectification of the assessment orders. The power to make the rectification lay with the appellate authority, and the impugned notices therefore could not be sustained.

Conclusion: The assessing authority was not competent to carry out the proposed rectification, and the notices were quashed with liberty to the appellate authorities to make appropriate rectification.

Final Conclusion: The petitions succeeded because the rectification jurisdiction in relation to appellate exemptions rested with the appellate authority and not with the assessing authority.

Ratio Decidendi: Where an exemption has been granted by the appellate authority, the assessing authority lacks jurisdiction to rectify the assessment to reverse that exemption; the rectification must be undertaken, if at all, by the appellate authority.

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