Revised mica turnover computation could not stand where it would have caused double taxation in the factual setting.

A revisional recomputation of mica turnover under the Andhra Pradesh General Sales Tax Act was examined on the basis that mica was taxable at the point of purchase by the last dealer in the State. That taxing principle was accepted as correct, but the revised method would have brought opening stock, closing stock and inter-State or foreign sales into the computation again, after the same turnover had already suffered tax in the earlier year. Because the department had followed a consistent practice and later assessments had become final, the change could not be enforced so as to create double taxation in the facts of the case.

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Issues: Whether the revisional authority was right in altering the method of computing taxable turnover of mica by bringing the closing stock and inter-State or foreign sales into the computation, and whether such change could be sustained when it would result in double taxation in the facts of the case.

Analysis: The revisional authority acted under Section 20(2) of the Andhra Pradesh General Sales Tax Act, 1957 and applied the principle that mica was taxable at the point of purchase by the last dealer in the State, with reference to entry 6 of the Second Schedule. The principle itself was held to be correct. However, the department had followed a consistent practice under which the opening stock of the relevant year had already suffered tax in the preceding assessment year. On the facts found, giving effect to the revised method would have taxed the same turnover again, and the assessments for subsequent years had already become final, making a uniform reworking impracticable.

Conclusion: The revision authority's method of computation was not interfered with in the circumstances, and the assessee succeeded because the change in practice could not be applied so as to cause double taxation.

Final Conclusion: The tax revision was dismissed, leaving the assessee's assessment undisturbed on the ground that the revised computation could not be enforced to the assessee's detriment in the given factual setting.

Ratio Decidendi: Even where the correct taxing principle is identified, a revisional change in computation will not be sustained if its application in the prevailing factual and administrative context results in double taxation.

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