Rectification orders enhancing tax or reducing refund require prior written notice and hearing before valid exercise of power.

Rectification power under section 45(1) of the Madhya Pradesh General Sales Tax Act, 1958 is confined to mistakes apparent from the record. Where rectification would enhance tax liability or reduce a refund, the second proviso requires prior written notice to the dealer and a reasonable opportunity of hearing before any valid order can be made. Compliance with this notice-and-hearing requirement is a condition precedent to the exercise of the rectification power; without it, the order is unsustainable and liable to be quashed.

---

---

Issues: Whether a rectification order enhancing tax liability or reducing refund could be passed under the second proviso to section 45(1) of the Madhya Pradesh General Sales Tax Act, 1958, without prior written notice to the dealer and a reasonable opportunity of hearing.

Analysis: The power of rectification under section 45(1) is limited to correction of a mistake apparent from the record. Where the proposed rectification would have the effect of enhancing tax or reducing refund, the second proviso makes prior written notice to the dealer and a reasonable opportunity of hearing mandatory. Compliance with this requirement is a condition precedent to the valid exercise of rectification power. In the absence of such notice, the rectification order cannot be sustained.

Conclusion: The rectification order was invalid for want of the mandatory notice and hearing, and it was liable to be quashed.

Ratio Decidendi: A rectification order under section 45(1) of the Madhya Pradesh General Sales Tax Act, 1958, which enhances tax or reduces refund, is without jurisdiction unless the dealer is first given written notice and a reasonable opportunity of hearing.

---