Limited rectification powers cannot reopen completed assessments, and consumable carbide tip inserts remained exempt for export units.

Section 55 of the Tamil Nadu General Sales Tax Act, 1959 was construed as a limited rectification power and not a power of review; reopening completed assessments to withdraw an exemption was therefore beyond its scope. The later reassessment notices were treated as an impermissible reappraisal of the original assessment and lacked jurisdiction. On exemption, carbide tip inserts sold to 100% EOUs were treated as consumable goods because they were used in cutting work, lost utility on use, and did not continue as tools or spare parts. The Government Order exemption for export promotion was applied strictly, and the relief granted to the assessee was restored.

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Issues: (i) Whether the reassessment/revision of assessment could be sustained under Section 55 of the Tamil Nadu General Sales Tax Act, 1959 as a rectification of an error apparent on the face of the record; (ii) Whether carbide tip inserts sold to 100% EOUs were consumable goods entitled to exemption under G.O.Ms.No.528 dated 21.11.1997.

Issue (i): Whether the reassessment/revision of assessment could be sustained under Section 55 of the Tamil Nadu General Sales Tax Act, 1959 as a rectification of an error apparent on the face of the record.

Analysis: Section 55 was construed as a limited power of rectification and not a power of review. The original assessments had been completed after verification of the dealers' documents and exemption claim. The later notices and revised assessments were issued to deny the earlier granted exemption and thus amounted to reopening and reappraisal of the assessment, which is beyond the scope of rectification of an apparent mistake.

Conclusion: The reassessment under Section 55 was held to be impermissible and without jurisdiction, in favour of the assessee.

Issue (ii): Whether carbide tip inserts sold to 100% EOUs were consumable goods entitled to exemption under G.O.Ms.No.528 dated 21.11.1997.

Analysis: The exemption was intended to promote exports and had to be construed strictly, without adding words to the notification. On the facts, the carbide tip inserts were used for cutting, lost their utility upon use, and were therefore treated as consumable goods rather than continuing tools or spare parts. The Tribunal's view that they retained their identity was rejected as unsupported by the material on record.

Conclusion: The goods were held to be consumable goods eligible for exemption under the Government Order, in favour of the assessee.

Final Conclusion: The tax case revisions succeeded, the Tribunal's orders were set aside, and the orders of the First Appellate Authority granting relief were restored.

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