Exempt turnover cannot enter the additional sales tax base, and rectification requests need reasoned consideration.

A rectification application pointing to an apparent error cannot be rejected without reasons or without independently examining the dealer's submissions. The article also states that additional sales tax is an incidental levy linked to the principal sales tax liability, so turnover exempt under the principal tax regime cannot be included in the additional sales tax base. Reading the exemption notification with the statutory scheme, exempt sales are not taxable turnover for additional sales tax purposes, and the cited precedent and later Division Bench view support that construction. On that basis, the rejection of rectification was treated as unsustainable and refund of excess additional sales tax was due.

---

---

Issues: Whether the impugned order rejecting rectification under section 55 was sustainable, and whether the petitioner was entitled to exclusion of exempt turnover while computing additional sales tax and to refund of the excess additional sales tax paid.

Analysis: A rectification request based on an apparent error could not be rejected without reasons or without considering the dealer's representations. The authority had merely reiterated the assessment view and had not independently examined the scope of section 55. On the levy issue, additional sales tax is to be construed as an incidental levy linked to the principal sales tax liability; turnover not taxable under the principal Act by reason of exemption cannot be brought into the additional sales tax base. The exemption notification, read with the statutory scheme governing additional sales tax, therefore barred levy on exempt turnover. The cited precedent on similar additional sales tax provisions supported this construction and the later Division Bench decision also held that exempt sales could not be treated as taxable turnover for additional sales tax purposes.

Conclusion: The rejection of rectification was unsustainable, and the petitioner was entitled to exclusion of exempt turnover and refund of the excess additional sales tax.

Final Conclusion: The writ petition succeeded, the assessment-side order was set aside, and the authority was directed to grant the exemption benefit and refund the additional sales tax within the stipulated time.

Ratio Decidendi: Turnover exempt from tax under the principal sales tax regime cannot be included in the taxable base for additional sales tax, and an authority deciding a rectification application must apply its mind and give reasons when an apparent error is pointed out.

---