Suo motu revisional power is discretionary when reopening depot sales findings under sales tax law

An assessee served with notice under section 34 of the Tamil Nadu General Sales Tax Act, 1959 may request the Board of Revenue to exercise suo motu revisional power even on issues decided against it, but that power is discretionary and must be exercised judicially. Relief is available only where circumstances justify reopening the matter. Where the assessee had not challenged the adverse finding before the Tribunal and offered no supervening circumstance or explanation for that omission, the Board was entitled to decline reopening the factual question. The refusal to interfere with the depot sales finding was therefore justified and not arbitrary.

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Issues: Whether the Board of Revenue was bound to exercise its suo motu power under section 34 of the Tamil Nadu General Sales Tax Act, 1959, to reopen the finding that the disputed turnover represented depot sales and not inter-State sales.

Analysis: An assessee who is served with notice under section 34 may seek exercise of the Board's suo motu revisional power even on points decided against it, but the power is discretionary and must be exercised judicially. Relief is warranted only where the circumstances justify reopening the matter. On the facts, the assessee had not challenged the adverse finding before the Tribunal and no supervening circumstance or explanation was shown for not doing so. The Board therefore declined to reopen the factual question and did not act arbitrarily or refuse jurisdiction.

Conclusion: The Board of Revenue was not bound to revisit the depot sales issue and its refusal to interfere was justified; the contention failed.

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