Revisional power over sales tax assessment upheld where failure to make necessary enquiries made the order erroneous and revenue prejudicial.

A revision under section 36 of the Assam General Sales Tax Act, 1993 was upheld because the assessment was made without the enquiries reasonably necessary to determine the correct turnover. The assessing authority failed to verify basic facts, including inconsistencies between declared stock value and sales value, and accepted a lower sales figure without recording reasons. That omission was treated as a jurisdictional error, making the assessment erroneous. As the defective assessment resulted in lesser revenue being collected by the State, it was also prejudicial to the interests of the Revenue, so the revisional power was validly exercised.

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Issues: Whether the revisional power under section 36 of the Assam General Sales Tax Act, 1993 could be validly exercised on the facts of the case on the ground that the assessment order was erroneous and prejudicial to the interests of the Revenue.

Analysis: The assessment had been completed without making the enquiries that were reasonably necessary to determine the correct turnover. The sales bills showed no discount, the declared stock value and sales value were inconsistent, and the assessing authority did not verify the basic facts or record reasons for accepting the lower sales figure. Such omission amounted to a grossly irregular exercise of jurisdiction. An error committed in this manner was treated as a jurisdictional error, and therefore the assessment order could properly be regarded as erroneous. Since the resulting assessment had led to a lesser revenue being collected by the State, it was also prejudicial to the interests of the Revenue.

Conclusion: The conditions for invoking section 36 were satisfied, and the revisional order as affirmed in appeal was upheld.

Final Conclusion: The writ petition failed because the impugned revisional action was sustained as a lawful exercise of supervisory power over an assessment vitiated by failure to make necessary enquiries.

Ratio Decidendi: An assessment made without making the enquiries reasonably required to ascertain the basic facts, and thereby resulting in lesser revenue, may amount to a jurisdictional error and be revised as an erroneous order prejudicial to the interests of the Revenue.

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