Mandatory review of pre-validation assessments under sales tax law supports refund where excess tax was collected on declared goods.

Section 11AA of the Punjab General Sales Tax Act, 1948 required the Assessing Authority to review pre-Validation Act assessments and bring them into conformity with the amended law. A reply to the notice that asserted a refund claim did not amount to acceptance of the earlier assessments or create finality against the assessee. On that basis, the department remained bound to reopen the assessments and grant relief under the validating amendment, including refund of sales tax collected in excess of the 2 per cent rate on charcoal sales.

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Issues: Whether section 11AA of the Punjab General Sales Tax Act, 1948, was attracted so as to require review of the pre-Validation Act assessments and entitle the assessee to refund of sales tax collected in excess of 2 per cent on sales of charcoal, a declared good.

Analysis: Section 11AA cast a mandatory duty on the Assessing Authority to review assessments and reassessments made before the commencement of the Punjab General Sales Tax (Amendment and Validation) Act, 1967, and to bring them into conformity with the amended Act. The reply given by the assessee to the notice did not amount to an expression of intention to abide by the earlier assessments; rather, it asserted a claim for refund. In these circumstances, the refusal to review could not be treated as having attained finality against the assessee, and the department remained bound to reopen the assessments and grant relief in accordance with the validating amendment.

Conclusion: Section 11AA was held applicable, and the assessee was entitled to refund of the tax collected in excess of 2 per cent on sales of charcoal.

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