Suo motu revisional power extends to erroneous assessments causing revenue loss, not just narrow jurisdictional defects.

Suo motu revisional power under section 36(1) of the Assam General Sales Tax Act, 1993 was held available where a concluded assessment reflected incorrect application of the statute and caused loss of lawful revenue. The assessment had allowed deduction beyond the 25% limit in section 8(3)(iv)(b) read with rule 14(1)(b), and the attempted rectification under section 37 did not turn the matter into a mere clerical or arithmetical error. The Court held that revision is not confined to narrow jurisdictional defects; an order erroneous in law or on facts and prejudicial to revenue can be revised. The revisional order and consequential demand were sustained.

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Issues: Whether the revisional authority could invoke suo motu revisional power under section 36(1) of the Assam General Sales Tax Act, 1993 to correct an assessment that had allowed deduction beyond the statutory limit and whether the assessment order was erroneous and prejudicial to the interests of the Revenue.

Analysis: The assessment had allowed deduction in excess of the 25 per cent limit prescribed by section 8(3)(iv)(b) read with rule 14(1)(b) of the Assam General Sales Tax Rules, 1993. The attempted rectification under section 37 did not proceed and the matter was not one of mere arithmetical or apparent factual mistake. The concluded assessment was found to have been made on an incorrect application of the statutory provisions and without due application of mind. The Court held that the revisional power under section 36(1) is not confined to a narrow notion of jurisdictional error and extends to orders that are erroneous in law or on facts and that cause loss of lawful revenue. Since the original assessment resulted in short levy of tax, it satisfied both conditions required for revision, namely error and prejudice to revenue.

Conclusion: The invocation of suo motu revisional jurisdiction was upheld and the assessment order, revisional order, and consequential demand were sustained against the assessee.

Ratio Decidendi: Suo motu revisional power may be exercised where a concluded assessment is erroneous due to incorrect application of law or non-application of mind and such error causes lawful revenue loss; it is not confined to narrow jurisdictional defects alone.

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