Rectification limitation under sales tax law stands apart from escaped assessment bar, allowing enhancement despite time-bar

An order of rectification under section 22 of the U.P. Sales Tax Act is confined to correcting a mistake apparent on the face of the record and is governed by its own three-year limitation from the date of the order sought to be rectified. The limitation for assessment of escaped turnover under section 21(2) does not control a section 22 rectification, because a rectification order is a separate statutory mechanism and is not treated as an assessment order merely because it enhances tax. Accordingly, rectification can validly enhance assessment even where direct assessment of the escaped turnover would otherwise be time-barred, and the question was answered in favour of the Revenue.

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Issues: Whether an order of rectification passed under section 22 of the U.P. Sales Tax Act can validly enhance the assessment on escaped turnover when direct assessment of that turnover had become time-barred under section 21(2) of the U.P. Sales Tax Act.

Analysis: Section 22 permits rectification only of a mistake apparent on the face of the record and prescribes its own limitation of three years from the date of the order sought to be rectified. The limitation applicable to assessment of escaped turnover under section 21(2) is a different statutory bar and does not control a rectification order under section 22. An order under section 22 is not an assessment order merely because it results in enhancement of tax, and the legislative scheme also supports this distinction since section 9 does not provide an appeal from an order under section 22. The separate machinery and limitation for rectification show that such an order stands on its own footing and cannot be tested by the period prescribed for escaped assessment.

Conclusion: The answer to the referred question is in the affirmative. A rectification order under section 22 is not barred merely because direct assessment of the escaped turnover would be time-barred under section 21(2), and the issue is decided against the assessee and in favour of the Revenue.

Ratio Decidendi: A rectification order made under a provision with its own limitation period is governed by that special limitation and is not treated as an assessment order for applying the limitation applicable to escaped assessment.

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