Reassessment for escaped additional sales tax upheld after judicial declaration confirmed the levy as always chargeable.

A judicial declaration that additional sales tax is chargeable states the law as it always stood, rather than creating a new rule prospectively. On that basis, where the tax had escaped assessment after the Supreme Court's declaration, reassessment under section 19(1) of the Kerala General Sales Tax Act, 1963 was valid. The assessing officer was therefore justified in initiating reassessment proceedings, and the challenge to the reassessment failed.

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Issues: Whether reassessment under section 19(1) of the Kerala General Sales Tax Act, 1963 was valid where additional sales tax had escaped assessment after the Supreme Court declared the levy chargeable.

Analysis: The assessee challenged reassessment on the ground that the assessing officer had wrongly applied the Supreme Court decision concerning levy of additional sales tax. The Court held that the Supreme Court's declaration of law did not create a new rule for the future but stated what the law had always been. Once it was held that additional sales tax was chargeable, the tax had escaped assessment and the assessing officer was justified in initiating reassessment proceedings.

Conclusion: The reassessment was lawful and the challenge failed.

Ratio Decidendi: A judicial declaration that tax is chargeable operates as a statement of the law as it always stood, and reassessment is valid where such tax had escaped assessment.

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