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2015 (6) TMI 1101 - HC - VAT and Sales TaxRectification application u/s 37 - carpet - exemption from tax - unaccounted stock of carpet - An application u/s 37 was moved prima facie on the plea that order u/s 72(3) of compounding the case was not proper and that a mistake apparent on the face of record has crept in and it needs rectification - Whether the carpets manufactured by the petitioner are not exempt from tax as per the judgment of Supreme Court in Ess Dee Carpet Enterprises v. Union of India [1989 (12) TMI 353 - SUPREME COURT] decided on December 7, 1989? - Held that: - rectification implies the correction of an error or removal of defects or imperfections and could not be used to appreciate the evidence of new facts which were not placed earlier. Rectification implies an error, mistake or defect which after rectification is made right. The order dated August 16, 1997 attained finality and at least there was no mistake apparent under section 37 in the order dated August 16, 1997 which needed rectification and this was rightly rejected by the assessing officer. The assessee in the garb of application under section 37 in fact wanted review of the order which is impermissible. Reliance was placed upon the judgment rendered in the case of Ess Dee Carpet Enterprises v. Union of India [1989 (12) TMI 353 - SUPREME COURT] which in my view, is distinguishable, and even does not touch upon the controversy in hand, inasmuch as in that case, the honourable apex court was considering matter relating to the Employees Provident Fund and Misc. Provision Act - Even the said judgment only speaks of textile and how carpet comes within the definition of "textile" has even not been pointed out by the counsel for the assessee during the course of arguments. Merely mentioning that carpet is a textile and is exempt, does not bear out either from the record or from the submissions made by the counsel for the petitioner. Once the excess stock was found, admitted by the assessee an application for composition (compounding) having been moved which was accepted and attained finality, no mistake has been noticed at least in the order passed on August 16, 1997 which in my view, has rightly been rejected by the assessing officer and accordingly the present petition fails - decided against the Assessee.
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