Exemption certificate controls assessment reopening where tax authorities cannot ignore the certified exemption percentage without prescribed correction.

The Commercial Taxes Officer could not reopen the assessment under section 30 of the Rajasthan Sales Tax Act, 1994 on a basis contrary to the exemption certificate issued by the competent authority. The certificate granted exemption to 75% of the tax liability on total fixed capital investment, and the assessing authority had no power to substitute a different view that only 60% was admissible when the certificate had not been corrected through the prescribed procedure. The reopening notices were therefore inconsistent with the operative exemption certificate and beyond jurisdiction, and were liable to be set aside.

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Issues: Whether the Commercial Taxes Officer could reopen the assessment and issue notices under section 30 of the Rajasthan Sales Tax Act, 1994 by taking a view contrary to the exemption certificate issued by the competent authority.

Analysis: The exemption certificate issued by the District Level Screening Committee specifically granted exemption to the extent of 75 per cent of the tax liability on the total fixed capital investment. The assessing authority proceeded on the footing that only 60 per cent exemption was admissible. The certificate had not been corrected through the prescribed procedure and, in the circumstances, the taxing authority could not disregard the certificate and proceed on a contrary assumption. The notice for reopening was therefore inconsistent with the certificate and beyond the authority's jurisdiction.

Conclusion: The notices issued under section 30 were without jurisdiction and were liable to be set aside.

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