Escaped assessment cannot reopen turnover already considered and exempted in the original assessment

Turnover that was considered in the original assessment and expressly exempted could not later be treated as escaped turnover merely because the assessing authority changed its classification view. The Mysore HC applied the principle that the escaped-assessment power under section 12-A of the Mysore Sales Tax Act, 1957 is not available to reopen an already examined and disposed of in the original assessment. On that basis, the reassessment notice in relation to the exempted coriander turnover was without jurisdiction and could not be sustained.

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Issues: Whether turnover that was considered and exempted in the original assessment could later be treated as escaped turnover and brought to tax under section 12-A of the Mysore Sales Tax Act, 1957.

Analysis: The turnover relating to coriander had been placed before the assessing authority in the original assessment and was expressly exempted. The governing principle applied was that where a turnover has been assessed to the extent of being considered and then exempted, it cannot thereafter be treated as escaped assessment merely because the authority later changes its view on classification. The Court followed earlier decisions holding that the escaped-assessment provision is not available to reopen a matter already considered and disposed of in the original assessment.

Conclusion: Section 12-A could not be invoked against the petitioner in respect of the exempted turnover, and the notice proposing reassessment was without jurisdiction.

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