Reassessment for under-assessed tax rate upheld under section 12; reference refused because the law was already settled.

Section 12 of the Rajasthan Sales Tax Act, 1954 was construed broadly to permit reassessment not only for escaped turnover but also where tax had originally been levied at a lower rate than that prescribed for the commodity. On that basis, the contrary view of the Deputy Commissioner and the Board of Revenue was held unsustainable. A reference under section 15 was not called for because the legal position was already settled and the disputed amounts were negligible, so the reference applications were not entertained.

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Issues: Whether section 12 of the Rajasthan Sales Tax Act, 1954 could be invoked to reassess turnover where tax had originally been levied at a rate lower than the rate prescribed by law, and whether a reference should be called despite the issue being settled and the amounts involved being small.

Analysis: The Court treated the legal question as already concluded by earlier authority. It accepted that section 12 was wide enough to cover not only escaped turnover but also cases where assessment had been made at an unduly low rate for the commodity concerned. On that footing, the orders of the Deputy Commissioner and the Board of Revenue holding section 12 inapplicable were not sustainable. At the same time, the Court declined to call for a reference under section 15 because the law was already settled and the disputed amounts were negligible.

Conclusion: Section 12 could be used to reassess where the original assessment had been made at a lower rate than prescribed, but no reference was called for.

Final Conclusion: The legal position on reassessment under section 12 was affirmed, yet the reference applications were not entertained and were dismissed.

Ratio Decidendi: Section 12 of the Rajasthan Sales Tax Act, 1954 authorises reassessment where tax has been assessed at too low a rate, not merely where turnover has escaped assessment.

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