Rectification of apparent tax errors requires correction when a clerical mistake is promptly raised within the statutory period.

A clerical or arithmetical mistake apparent from the record in a sales tax assessment must be rectified when promptly brought to the assessing authority's notice within the statutory period. The document explains that an obvious computational error in levying tax on a turnover item was pointed out shortly after service of the assessment order, yet rectification was not made and the request was later rejected without justification. Rule 50 of the A.P. General Sales Tax Rules, 1957 permits correction of such mistakes within four years, and failure to act on a valid request was treated as contrary to law. The refusal was set aside and the assessment and demand were modified to reflect the correct tax.

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Issues: Whether the assessing authority was bound to rectify a clerical or arithmetical mistake apparent from the record in the sales tax assessment and modify the demand accordingly.

Analysis: The assessment order contained an obvious computational error in levying tax on a turnover item. The assessee brought the mistake to the notice of the assessing authority within a few days of service of the assessment order, but no rectification was made despite repeated reminders and the request was ultimately rejected without justification. Rule 50 of the A.P. General Sales Tax Rules, 1957 permits rectification of any clerical or arithmetical mistake apparent from the record within four years, and the authority's failure to act on a prompt and valid request was found to be contrary to law.

Conclusion: The assessee succeeded. The impugned refusal was set aside, the tax payable on the disputed turnover was reduced to the correct amount, and the assessment and consequential demand were modified accordingly.

Ratio Decidendi: A clerical or arithmetical mistake apparent from the record in a tax assessment must be rectified when promptly brought to the assessing authority's notice within the statutory period.

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