Compounded scheme option must be exercised on time; later-year acceptance does not justify rectification of an earlier assessment.

Rectification under section 55 of the Tamil Nadu General Sales Tax Act, 1959 is confined to correction of an error, and cannot be used to revive a concluded assessment where the dealer did not exercise the option for the compounded scheme under section 7C(2) with the first monthly return for the relevant year. Entitlement under section 7C depends on timely compliance with the statutory option requirement, and section 7C(3) operates only after a valid option is exercised under section 7C(1) read with section 7C(2). Acceptance of the compounded scheme for a later year did not create a basis to reopen or rectify the earlier year's assessment.

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Issues: Whether rectification could be allowed on the basis of a subsequent assessment order permitting payment of tax under the compounded scheme for a later year, when the statutory option for the earlier year was not exercised along with the first monthly return within the prescribed time.

Analysis: Section 55 of the Tamil Nadu General Sales Tax Act, 1959 permits rectification only where there is an error requiring correction. The entitlement to pay tax under section 7C depends on compliance with section 7C(2), which requires the dealer to exercise the option along with the first monthly return for the financial year. The earlier assessment year was not saved by the fact that the same works contract continued into the next year, because section 7C(3) operates only after a valid exercise of option under section 7C(1) in accordance with section 7C(2). Since the option for the relevant year was not exercised in time, the later acceptance of the compounded scheme for the subsequent year did not create any basis to reopen or rectify the concluded assessment for the earlier year.

Conclusion: Rectification was not permissible, and the rejection of the application was justified.

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