Compounded liquor tax computation must include opening stock sold during the year; patent omission was rectifiable.

A compounded liquor tax scheme computed on the purchase price of liquor sold during the relevant year includes opening stock sold in that year and excludes closing stock. Excluding opening stock from the purchase turnover was contrary to the mandatory statutory scheme, so the error was a patent mistake capable of correction in rectification proceedings under section 43. The rectification was therefore valid, and the assessment was lawfully amended to include the opening stock in the turnover for levy under section 7, with the issue decided in favour of the Revenue.

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Issues: Whether the assessment could be rectified under section 43 by including the value of opening stock in the purchase turnover for levy under section 7.

Analysis: The compounded levy under section 7 is a substitute for tax under section 5(2) and is computed on the purchase price of the entire liquor sold during the relevant year. The purchase price necessarily takes in the opening stock sold during the year and excludes closing stock. Exclusion of opening stock from the computation made the original assessment patently contrary to the mandatory statutory scheme, and such a mistake was rectifiable under section 43.

Conclusion: The rectification was valid and the inclusion of opening stock in the purchase turnover was in law; the issue is decided against the assessee and in favour of the Revenue.

Ratio Decidendi: Where a compounded tax scheme is computed on the purchase price of liquor sold during the relevant year, the purchase turnover includes opening stock sold in that year, and a patent omission in the original assessment may be corrected in rectification proceedings.

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