2013 (4) TMI 694 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to order granting sanction to reopen assessment u/s 21(2) of U.P. Trade Tax Act for AY 2002-2003.

Summary:
The petitioner, a proprietorship concern registered under U.P. Trade Tax Act, challenged the order granting sanction to reopen assessment for AY 2002-2003. The petitioner contended that the order lacked reasons and did not establish escapement of turnover, citing precedent Commissioner of Sales Tax v. M/s. Magan Mal Nemi Chand, 1995 UPTC 912. The Court noted that the impugned order lacked reasons as required by law, referencing S.K. Traders v. Additional Commissioner, 2008 UPTC 392. Consequently, the Court set aside the order, ruling that the limitation period for passing a fresh order of sanction and reassessment would not apply in this case. The writ petition was allowed, and the impugned order granting approval and the reassessment notice were both set aside, remanding the matter for fresh consideration by respondent no. 2, with a directive for the petitioner to file a certified copy of the judgment within 15 days for further proceedings. Failure to comply would result in dismissal of the writ petition.