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Issues: (i) whether the reassessment or rectification power under section 22 could be invoked where the alleged error was one of law and not a mistake apparent on the face of the record; and (ii) whether spun pipes and G.I. pipes used for water lines could be treated as "sanitary fittings" liable to tax at the higher rate.
Issue (i): whether the reassessment or rectification power under section 22 could be invoked where the alleged error was one of law and not a mistake apparent on the face of the record.
Analysis: Section 22 was confined to correction of mistakes apparent from the assessment record and did not extend to rectifying an error of judgment. The earlier binding view had already held that an assessing authority could not enhance tax under section 22 merely because it later took a different legal view on the nature of the goods.
Conclusion: The invocation of section 22 was not justified and the objection to jurisdiction succeeded.
Issue (ii): whether spun pipes and G.I. pipes used for water lines could be treated as "sanitary fittings" liable to tax at the higher rate.
Analysis: The controlling test was whether the pipes were used in bathrooms or lavatories, since not every article connected with sanitation falls within the expression "sanitary fittings". No finding had been recorded that the pipes were so used, and the distinction between spun pipes and G.I. pipes was immaterial on that test. The authority was bound to follow the law laid down by the High Court and could not prefer a contrary view taken in revision.
Conclusion: The pipes were not proved to be sanitary fittings and the higher rate of tax could not be sustained.
Final Conclusion: The impugned tax enhancement order lacked jurisdiction and failed on the merits, so the writ petition succeeded and the assessment action was quashed.
Ratio Decidendi: Rectification under section 22 is limited to mistakes apparent on the face of the record and cannot be used to change a concluded assessment on a different legal view; goods are "sanitary fittings" only when their use brings them within the restricted class of bathroom or lavatory fittings.
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