Reassessment requires underassessment or escaped turnover; full assessment at the applicable rate bars reopening.

Section 16(1)(b) of the Tamil Nadu General Sales Tax Act permits reassessment only where turnover has been assessed at a rate lower than the rate legally applicable or has escaped assessment. The dressed hides and skins turnover had already been assessed in full at 1 1/2 per cent under item 7(b) of the Second Schedule, which was the applicable rate. As no part of the turnover was assessed below the correct rate and nothing had escaped assessment, reopening the assessment had no legal basis and was impermissible.

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Issues: Whether reassessment under section 16(1)(b) of the Tamil Nadu General Sales Tax Act was permissible when the entire turnover had already been assessed at the applicable rate under item 7(b) of the Second Schedule.

Analysis: Section 16(1)(b) authorises reassessment only where, for any reason, the whole or any part of the turnover has been assessed at a rate lower than the rate at which it is assessable. Here, the entire sales turnover of dressed hides and skins had already been assessed at 1 1/2 per cent under item 7(b), and that was the rate at which the turnover was assessable. The provision could apply only if some part of the turnover had escaped assessment or had been assessed at a lower rate than the applicable rate. Since that was not the factual position, the reopening of assessment was without legal basis.

Conclusion: Reassessment under section 16(1)(b) was not permissible, and the assessee succeeded.

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