Bona fide revision of annual return cannot be refused merely because corrected figures change turnover when no proceedings have begun.

Revision of an annual return under the KVAT regime is an enabling mechanism to correct bona fide omissions or mistakes reflected in audited figures, and it cannot be refused merely because the correction alters turnover. The decisive limit is whether penal or analogous departmental proceedings have already been initiated; where no assessment or penalty proceedings were pending and the request was made promptly after filing the audited statement, the assessee was entitled to revise the return. The objection based only on possible turnover variation was insufficient, and the refusal to permit revision was set aside.

---

---

Issues: Whether the petitioner was entitled to revise the annual return under section 42(2) of the Kerala Value Added Tax Act despite the Department's objection that the revision would alter turnover and despite the absence of pending assessment or penalty proceedings.

Analysis: The provision governing revision of annual returns was construed as an enabling provision intended to correct omissions or mistakes reflected against the audited figures. The Court relied on the earlier interpretation that the only material prohibition is where penal proceedings or analogous departmental action have already been initiated. On the facts, the audited statement had been filed and the request for revision was made immediately thereafter, before any assessment or penalty proceedings commenced. The objection that the revised return might alter turnover was held insufficient by itself, especially where the omission was inadvertent and no departmental detection of suppression had occurred.

Conclusion: The petitioner was entitled to revise the return, and the refusal to permit revision was set aside; the decision was in favour of the assessee.

Final Conclusion: A bona fide request to correct an inadvertent omission in the annual return cannot be rejected merely on the ground of possible turnover variation when no assessment or penalty proceedings have been initiated.

Ratio Decidendi: Revision of a return under the KVAT regime may not be denied for a bona fide omission detected from audited figures merely because the correction changes turnover, so long as no penal or assessment proceedings have already been initiated.

---