Rectification under sales tax law upheld where notice was given, no objection filed, and no enhancement of assessment or penalty occurred.

Rectification under section 55(1) of the Tamil Nadu General Sales Tax Act was held valid where the assessee had been given notice, filed no objection, and the corrections only restored the correct deferral period and tax rate without enhancing assessment or penalty. The proviso requiring a reasonable opportunity of hearing applied only where rectification has the effect of enhancement, so no personal hearing was necessary on these facts. Section 55(4) also preserved the ordinary appellate and revisional remedies against a rectification order. The challenge to the rectification therefore failed, and the orders were upheld.

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Issues: (i) Whether rectification under section 55(1) of the Tamil Nadu General Sales Tax Act, 1959 could be set aside for want of personal hearing when no objection was filed and the rectification did not enhance the assessment or penalty; (ii) Whether the assessee was without an appellate or revisional remedy against the rectification order under section 55(4) of the Tamil Nadu General Sales Tax Act, 1959.

Issue (i): Whether rectification under section 55(1) of the Tamil Nadu General Sales Tax Act, 1959 could be set aside for want of personal hearing when no objection was filed and the rectification did not enhance the assessment or penalty.

Analysis: The notice issued before rectification gave the assessee an opportunity to object, but no objections were filed. The proviso to section 55(1) requires notice and a reasonable opportunity of being heard where rectification has the effect of enhancing an assessment or penalty. On the facts, the corrections made only restored the correct deferral period and tax rate and did not amount to an enhancement of assessment or penalty.

Conclusion: The rectification was not invalid for want of personal hearing, and the challenge failed on this ground.

Issue (ii): Whether the assessee was without an appellate or revisional remedy against the rectification order under section 55(4) of the Tamil Nadu General Sales Tax Act, 1959.

Analysis: Section 55(4) expressly provides that the provisions relating to appeal and revision apply to an order of rectification in the same manner as they apply to the original order. The statute therefore preserved the normal remedial remedies against a rectification order.

Conclusion: The contention that no other remedy was available was rejected.

Final Conclusion: The rectification orders were upheld and the petitions were dismissed.

Ratio Decidendi: A rectification order under section 55(1) is not invalid where the assessee was given notice, failed to object, and the correction does not enhance the assessment or penalty; in addition, section 55(4) preserves the ordinary appellate and revisional remedies against such an order.

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