2010 (11) TMI 884 - HC - VAT and Sales Tax

Summary

Issues:
Challenging reassessment proceedings for assessment years 1998-99 to 2000-01 under the U.P. Trade Tax Act, 1948.

Detailed Analysis:

Assessment Years 1999-2000 and 2000-01:
The assessing officer had previously considered the burnt coal/coal ash akin to coal based on its nature and calorific value, taxing it at four per cent. The reassessment proceedings were deemed a change of opinion, rendering them impermissible. Consequently, the approval dated March 22, 2005, for these assessment years was nullified, including any subsequent actions. However, this ruling did not extend to the year 1998-99.

Assessment Year 1998-99:
In contrast to the subsequent years, the assessment order for 1998-99 did not reflect the consideration of the calorific value of burnt coal/coal ash. Despite referencing the High Court ruling, there was no evidence of a change in opinion or lack of material to warrant notice issuance. Therefore, the approval by respondent No. 2 on March 22, 2005, for the assessment year 1998-99 was upheld as legal. Any proceedings initiated in accordance with this approval were deemed valid, allowing the petitioner to participate and potentially appeal any assessment orders.

Conclusion:
The judgment concluded by deeming the reassessment proceedings for the years 1999-2000 and 2000-01 as illegal and quashed them. Conversely, the reassessment proceedings for the assessment year 1998-99 were upheld as valid and permitted to continue. The writ petition was partially allowed based on the aforementioned observations.