Taxability challenge in appeal cannot be rejected for a mistaken return description; appellate authority must examine the issue on merits.

A mistaken description of turnover in the return did not prevent the assessee from disputing its taxability in appeal. The appellate authority was required to examine whether the sales were in fact exigible to tax once that contention was raised, and its refusal to do so amounted to a failure to exercise the jurisdiction vested in it. The doctrine of estoppel did not bar the assessee from challenging the tax treatment of the sales. The assessee was therefore entitled to have the question of taxability decided on merits, and the appellate orders could not stand.

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Issues: Whether the appellate authority could decline to examine the assessee's contention that the sales were not exigible to tax on the ground that the return had treated them as inter-State sales, and whether the doctrine of estoppel barred such an appeal.

Analysis: A mistaken description in the return did not preclude the assessee from challenging the taxability of the turnover in appeal. Once such a contention was raised, the appellate authority was bound to examine whether the sales were in fact exigible to tax. The refusal to do so amounted to a failure to exercise the jurisdiction vested in the appellate forum, and the doctrine of estoppel had no application.

Conclusion: The assessee was entitled to have the taxability question examined on merits, and the orders of the appellate authorities could not stand.

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