Appellate power to enhance assessment extends to revenue's request, subject to notice and procedural safeguards under the sales tax law.

Section 38(5) of the M.P. General Sales Tax Act, 1958 gives the appellate authority power, subject to prescribed procedure and further inquiry, to confirm, reduce, enhance or annul an assessment or penalty, or to set aside the assessment and direct a fresh assessment. Rule 60 and Form XXVIII require notice to the person likely to be adversely affected before enhancement, so the power to enhance may be exercised in appeal only with procedural safeguards. The absence of a separate statutory right of appeal or cross-objection for the revenue does not limit the width of section 38(5). The Tribunal was therefore bound to consider the revenue's enhancement request rather than reject it as not maintainable.

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Issues: Whether the Tribunal was competent to refuse to consider the revenue's application for enhancement of turnover in the assessee's appeal under section 38(5) of the M.P. General Sales Tax Act, 1958.

Analysis: Section 38(5) confers on the appellate authority, subject to prescribed procedure and further inquiry, the power to confirm, reduce, enhance or annul the assessment or penalty, or to set aside the assessment and direct a fresh assessment. Rule 60 and Form XXVIII contemplate notice to the person likely to be affected adversely before enhancement is made, showing that enhancement can validly arise in an appeal and is controlled by procedural safeguards. The absence of a statutory right of appeal or cross-objection for the revenue does not cut down the width of section 38(5), especially when the statute separately provides reopening and revision powers. The earlier decisions relied on supported the view that once an assessee invokes appeal, the assessment may be examined fully and the power to enhance may be exercised, provided due notice is given.

Conclusion: The Tribunal was not justified in treating the revenue's application as not maintainable. It was bound to consider the question of enhancement under section 38(5), and the answer was in favour of the revenue and against the assessee.

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