Escaped turnover cannot be reopened where the item was already assessed and exempted in the original order.

Turnover that was already placed before the assessing authority and expressly exempted in the original assessment could not later be treated as escaped turnover under section 12-A of the Mysore Sales Tax Act read with rule 37 of the Mysore Sales Tax Rules. The reassessment power applies only where turnover has in fact escaped assessment, not where the item was considered and exempted earlier. On that basis, the notice seeking to reopen the same turnover was held to be without jurisdiction and was quashed.

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Issues: Whether turnover already before the assessing authority and exempted in the original assessment could later be treated as escaped turnover for invoking section 12-A of the Mysore Sales Tax Act, 1957 read with rule 37 of the Mysore Sales Tax Rules, 1957.

Analysis: The turnover in question had been placed before the assessing authority in the original assessment and had been expressly exempted by that order. The power to proceed on the footing of escaped turnover under section 12-A is attracted only where turnover has in fact escaped assessment, and not where the very item had already been considered and exempted. On that reasoning, the notice proposing reassessment of the same turnover could not be supported under the provision invoked.

Conclusion: The notice was without jurisdiction and was quashed; the petitioner's challenge succeeded.

Ratio Decidendi: Turnover that was already before the assessing authority and was exempted in the original assessment cannot be reopened as escaped turnover under section 12-A merely to reassess it.

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