Retrospective tax reduction can justify rectification of a completed assessment for error apparent on the record.

Retrospective reduction of sales tax can make a completed assessment inconsistent with the law deemed to have been in force for the relevant period. A clear and obvious mistake of law arising from applying the pre-amendment rate may constitute an error apparent on the face of the record, so rectification is maintainable even if the correction reduces the assessment and even if an appellate remedy was also available. The assessment may therefore be rectified to reflect the retrospective notification and the reduced tax rate in favour of the assessee.

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Issues: Whether a completed sales tax assessment could be rectified under the rectification provision on the basis of a retrospective notification reducing the rate of tax, on the ground that the original assessment contained an error apparent on the face of the record.

Analysis: The retrospective notification, issued in exercise of statutory power, altered the rate of tax with effect from an earlier date, so that the law applicable to the assessment years stood changed as if the reduced rate had always applied. In that situation, the assessment based on the earlier higher rate was contrary to the law as retrospectively amended. A mistake of law that is clear and obvious from the record can amount to an error apparent on the face of the record, and rectification is not excluded merely because the correction reduces the assessment or because an appellate remedy might also have been available.

Conclusion: The rectification applications were maintainable, and the refusal to correct the assessments was . The assessments were liable to be rectified in accordance with the retrospective reduction of tax, in favour of the assessee.

Final Conclusion: Retrospective tax amendments can render an existing assessment order rectifiable when the order no longer reflects the law deemed to have been in force for the relevant period.

Ratio Decidendi: Where a statutory amendment operates retrospectively, the assessment must be tested on the basis of the law as retrospectively altered, and a glaring mistake of law arising from applying the pre-amendment rate constitutes an error apparent on the face of the record amenable to rectification.

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