Rectification for subsequent change in law allows correction of an apparent taxability error under sales tax law.

Rectification under Section 55 of the Tamil Nadu General Sales Tax Act can be invoked when a later Supreme Court ruling declares the correct legal position on taxability, because a contrary assessment or appellate order then reflects an error apparent on the face of the record, provided the application is otherwise timely and maintainable. The note distinguishes earlier Revenue authorities on rectification and states that later authoritative declarations of law may justify correction of the apparent legal mistake. On that basis, rectification is maintainable and relief follows for the assessee.

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Issues: Whether rectification under Section 55 of the Tamil Nadu General Sales Tax Act could be allowed on the basis of a subsequent Supreme Court decision declaring the correct position of law on taxability.

Analysis: A subsequent pronouncement of the Supreme Court settling the law makes any contrary assessment or appellate order an error apparent on the face of the record, provided the rectification application is otherwise within time and maintainable under the statute. The earlier authorities relied on by the Revenue did not deal with rectification in the same way, whereas the later Supreme Court and supporting decisions recognised that statutory rectification can be invoked to correct an apparent legal mistake created by a later authoritative declaration of law.

Conclusion: Rectification was maintainable and the assessee was entitled to relief.

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