Suo motu revision for prejudice to Revenue upheld where later material showed exemption based on invalid F forms.

Suo motu revision under the Kerala General Sales Tax Act can be invoked where an assessment is prejudicial to the interests of Revenue, even if the revisional authority relies on subsequent material not before the assessing officer. The Court distinguished section 263 of the Income-tax Act, noting that section 37 does not require the order to be erroneous; prejudice to Revenue is sufficient. On that basis, later material indicating that exemption had been granted on invalid F forms justified revision, and the assessment was revised. The limitation challenge was not examined because the revision was found to be within time.

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Issues: Whether the Commissioner could invoke suo motu revision under section 37 of the Kerala General Sales Tax Act, 1963 on the basis of subsequent material not available to the assessing authority and whether the assessment order could be revised as prejudicial to the interests of Revenue.

Analysis: Section 37 of the Kerala General Sales Tax Act, 1963 requires only that the order be prejudicial to the interests of Revenue. The Court distinguished section 263 of the Income-tax Act, 1961, which additionally requires the order to be erroneous. It held that subsequent receipt of material showing that exemption had been granted on the basis of invalid F forms could justify revision, and that the expression prejudicial to the interests of Revenue should not be read in a pedantic manner. The challenge based on limitation was not gone into, as the revision under section 37 was found to be within time.

Conclusion: The Commissioner was justified in invoking section 37 and in revising the assessment; the challenge to the impugned order failed.

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