Rectification of Mistakes – Re-appreciation of Evidence on Records – Not Permissible – S. 37 of the Rajasthan Sales Tax Act, 1994.

The Rajasthan Sales Tax Board, in an appeal filed by the Department, against the order in appeal passed, had allowed the appeal and upheld the assessment order passed by the assessing authority and confirmed the levy of tax at a higher rate as well as penalty. The Board, thereafter, upon application for rectification of mistake filed by the dealer, deleted the penalty, by passing order of rectification of mistake u/s. 37 of the Act. The Department filed revision petition, before the Rajasthan High Court against such order for rectification of mistake, which was dismissed by the High Court. The Department filed appeal before the SC against the judgment of the Rajasthan High Court.

Held

Under Section 37 of the Act, the Board has the power to rectify any mistake which is apparent on record, which is neither a power of review or nor is it akin to the power of revision. But it is only a power to rectify a mistake apparent on the face of the record for which a re-appreciation of the entire records is neither possible nor called for. While passing the subsequent rectification order, the Board had exceeded its jurisdiction by re-appreciating the evidence on record and held that there was no malafide intention on the part of the dealer for tax evasion. The SC set aside the orders passed by the Rajasthan High Court as well as the subsequent order for rectification of mistake passed by the Board and upheld the assessment order passed by the assessing authorities.