Review jurisdiction over stock-transfer deduction upheld where later verification showed form F was not validly issued.

A review notice under section 83 of the West Bengal Sales Tax Act, 1994 read with rule 249 of the West Bengal Sales Tax Rules, 1995 was upheld because later verification showed that the form F relied on for stock-transfer treatment had not been validly issued to the petitioner's branch office. Rule 249 permits review for an apparent mistake of fact or law, and section 83 allows review in the interest of revenue. As form F must be obtained by the transferee in the State of delivery under rule 12(6) of the Central Sales Tax (Registration and Turnover) Rules, 1957, the authority could treat the assessment as involving reviewable error.

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Issues: Whether the notice initiating review of the assessment under section 83 of the West Bengal Sales Tax Act, 1994 read with rule 249 of the West Bengal Sales Tax Rules, 1995 was valid in view of the subsequent verification report showing that no form F had been issued to the petitioner's branch office.

Analysis: The original assessment had accepted the claim of stock transfer on the basis of declaration form F produced by the petitioner. A later verification from the taxing authority in Nagaland stated that no such form F had been issued to the branch office. Under rule 249, the assessing authority may review an assessment on its own motion where there is an apparent mistake in fact or law, and section 83 permits such review in the interest of revenue. Rule 12(6) of the Central Sales Tax (Registration and Turnover) Rules, 1957 requires that form F be obtained by the transferee in the State where the goods are delivered. Since the report indicated that the forms relied upon at assessment were not validly issued to the branch office, the authority was entitled to treat the matter as involving mistake of fact and law and to proceed with review.

Conclusion: The review notice was valid and was not liable to be quashed.

Ratio Decidendi: Where subsequent material reveals that declaration forms relied upon for allowing stock-transfer deduction were not validly issued to the transferee, the assessing authority may invoke review jurisdiction for an apparent mistake of fact or law under the governing sales tax review provision.

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