Statutory amnesty under Section 41AA cannot be defeated through revision based on later search material or direct reassessment.

Section 41AA of the Gujarat Sales Tax Act, 1969 created a one-time amnesty scheme that operated notwithstanding ordinary scrutiny under Section 41. Where the assessee satisfied the statutory conditions and made the prescribed additional payment, the deemed assessment took effect automatically. The specified disqualifications under Section 41AA(3) were limited to prior impounding or seizure of books, registers or documents, or the availing of incentive benefits. The revisional power under Section 67 could correct action contrary to statute, but it could not be used to defeat the scheme by relying on later search material. It also could not be used to make the assessment and impose penalty directly in revision.

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Issues: (i) Whether the revisional authority could reject the assessee's declaration under Section 41AA of the Gujarat Sales Tax Act, 1969 and reopen the completed assessment on the basis of later search and seizure material, and thereafter itself assess tax and penalty.

Analysis: Section 41AA created a one-time amnesty scheme for pending assessments, operating notwithstanding the ordinary scrutiny mechanism under Section 41. Once the assessee satisfied the statutory conditions and made the prescribed additional payment, the deeming fiction of assessment came into effect automatically. The disqualifications under Section 41AA(3) were limited to cases where books, registers or documents had already been impounded or seized, or where incentive benefits had been availed. The revisional power under Section 67 was wide, but it remained confined to correcting action that was contrary to the statute and could not be used to defeat the scheme by relying on later developments that did not exist when the declaration was made. The authority also could not directly complete assessment in revision where, if the declaration were found invalid, the matter had to return to assessment under Section 41.

Conclusion: The revisional authority had no jurisdiction to reject the declaration on the grounds relied upon and could not itself make the assessment and impose penalty. The issue is decided in favour of the petitioner.

Final Conclusion: The impugned Tribunal decision and the revisional orders were set aside, and the petitions succeeded on the principal jurisdictional issue concerning Section 41AA.

Ratio Decidendi: A revisional authority cannot use its powers to nullify a statutory amnesty scheme by invoking grounds outside the express disqualifications in the provision, and a deemed assessment completed under such a scheme cannot be reopened on the basis of later events that were not existing disqualifications when the declaration was made.

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