Reassessment cannot rest on a mere change of opinion when an accepted exemption claim lacks fraud or suppression.

An assessment accepted under section 6A of the Central Sales Tax Act, 1956, cannot be reopened under section 16 of the Tamil Nadu General Sales Tax Act, 1959, merely because the authorities later take a fresh view of the same material. Reassessment is permissible only where the earlier acceptance is shown to be vitiated by fraud, collusion, misrepresentation, suppression of material facts, false particulars, or another jurisdictional defect. As no such adverse finding was recorded, the reassessment on the disputed turnover could not stand. Tax and penalty attributable to that turnover were therefore set aside, while the remaining assessment was left undisturbed.

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Issues: Whether the reassessment under section 16 of the Tamil Nadu General Sales Tax Act, 1959, could be sustained when the claim of exemption under section 6A of the Central Sales Tax Act, 1956, had earlier been accepted and there was no finding of fraud, collusion, misrepresentation, suppression of material facts, or false particulars.

Analysis: The assessment was reopened after an inspection and the turnover was enhanced, but the authorities recorded no finding that the original acceptance of the claim under section 6A was vitiated by any jurisdictional defect. The governing principle was that an order passed under section 6A is conclusive for practical purposes and can be reopened only on limited grounds such as fraud, collusion, misrepresentation, suppression of material facts, or false particulars. A mere change of opinion or a fresh look at the matter does not confer jurisdiction to reopen the assessment. In the absence of any such adverse finding, the reassessment could not stand in law.

Conclusion: The reassessment was invalid to the extent it related to the disputed turnover, and the levy of tax and penalty on that turnover was set aside in favour of the assessee.

Final Conclusion: Partial relief was granted by deleting the tax and penalty attributable to the disputed turnover, while the remaining assessment was left undisturbed.

Ratio Decidendi: An assessment accepted under section 6A of the Central Sales Tax Act, 1956, cannot be reopened under section 16 of the Tamil Nadu General Sales Tax Act, 1959, merely on a reappraisal of the same material, unless the earlier order is shown to be vitiated by fraud, collusion, misrepresentation, suppression of material facts, or similar jurisdictional defect.

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