1996 (7) TMI 538 - HC - VAT and Sales Tax

Summary

Issues involved:
The quashing of notice dated August 17, 1994 and August 18, 1994 under section 21 of the U.P. Trade Tax Act for the assessment years 1988-89 and 1989-90 based on the grounds of change of opinion.

Summary:

Issue 1: Quashing of Notice under Section 21 of the U.P. Trade Tax Act
The petitioner sought to quash the notice dated August 17, 1994 and August 18, 1994 under section 21 of the U.P. Trade Tax Act for the assessment years 1988-89 and 1989-90. The petitioner, engaged in the business of purchase and sale of chemicals, acted as a stockist/agent for M/s. Somaiya Organics (India) Limited for inter-State sales. The impugned notices were challenged on the grounds of being a case of change of opinion, as the transactions had already been considered in detail in the original assessment orders. The State argued that the notice was issued based on a survey, but failed to point out any new material justifying the notice. The Court held that the notice was without authority of law as it constituted a case of change of opinion, citing legal precedents such as Palco Lining Co. v. Sales Tax Officer Sector IV and Harbans Lal Malhotra v. Assistant Commissioner of Sales Tax, Ghaziabad.

Conclusion:
The Court quashed the impugned notices dated August 17, 1994 and August 18, 1994 under section 21 of the U.P. Trade Tax Act for the assessment years 1988-89 and 1989-90, ruling that they were illegal and without jurisdiction. The writ petition was allowed with costs, without prejudice to the rights of the respondents under the law.