Doctrine of merger applies only to issues actually decided; a separate departmental revision remained maintainable.

The doctrine of merger applies only to the extent a prior appellate or revisional order actually considered and decided the subject matter in issue. Under section 14 of the Rajasthan Sales Tax Act, 1954, the dealer's and the assessing authority's revisional rights are distinct and independent, with different statutory limits. Because the earlier revision by the dealer could not validly adjudicate the departmental challenge to the setting aside of penalty under section 16(1)(b), the Deputy Commissioner's order did not merge in the Board's order on that point. The separate departmental revision was therefore maintainable and had to be decided on merits.

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Issues: Whether a revision filed by the assessing authority was not maintainable on the ground that the Deputy Commissioner's order had merged in the Board's earlier order passed in the dealer's revision, and whether the doctrine of merger or res judicata barred a separate revision by the department.

Analysis: The revisional scheme under section 14 of the Rajasthan Sales Tax Act, 1954 confers distinct and independent rights on the dealer and the assessing authority, with different periods of limitation and different statutory limitations on the scope of interference. In the dealer's revision, the Board could pass only an order not prejudicial to the assessee, so the departmental grievance against the setting aside of penalty under section 16(1)(b) was not and could not have been adjudicated on merits in that proceeding. The principle of merger is not of universal application and depends on the subject-matter actually considered and decided in the appellate or revisional order. Since the department's challenge had not been decided in the earlier revision, the Deputy Commissioner's order, to that extent, did not merge in the Board's order and the separate departmental revision remained competent.

Conclusion: The separate revision filed by the assessing authority was maintainable and could not be dismissed merely on the ground of merger.

Final Conclusion: The reference was answered against the assessee, and the departmental revisional remedy was held to survive for decision on merits.

Ratio Decidendi: The doctrine of merger applies only to the extent an order has actually been considered and decided in the earlier appellate or revisional proceeding; matters not covered by that decision remain open to independent statutory revision.

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