9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 1567 - HC - VAT and Sales TaxReopening of assessment - Change of Opinion - Valuation - market value - Circular dated 16.06.2014 - whether for the assessment years prior to coming into force of new amended definition of market value, the calculation of entry tax would be applying the new definition or it would be the law as it stood prior to the enforcement of the new circular? - HELD THAT - The issue decided in the case of RELIANCE JUTE AND INDUSTRIES LIMITED VERSUS COMMISSIONER OF INCOME-TAX, WEST BENGAL 1979 (10) TMI 2 - SUPREME COURT where it was held that the assessing authority has sought to reopen the assessment and made reassessment only on the basis of change of opinion and on the basis of the circular issued by the State Government by which the Commissioner, Commercial Tax has directed to take into account the amount of royalty in calculating the entry tax without being any additional/fresh material brought on record. The circular of the State Government is based on change in law in the definition of market value which is only prospective in nature. This court has no hesitation in reaching to the conclusion that so far as assessment year which are prior to the issuance of the circular, the law as it stood prior to coming into force of amended definition of market value would be applicable. Petition allowed.
Issues involved:
Challenging circular and subsequent notifications on market value definition for entry tax calculation prior to enforcement of new definition. Analysis: 1. Background: The case involves writ petitions challenging a circular dated 16.06.2014 and subsequent notifications dated 01.07.2014 and 05.07.2014 related to the definition of "market value" for entry tax calculation. 2. Common Order: The court decides to address all the writ petitions together due to common facts involved in the cases. 3. Facts: The State Government issued a circular on 16.06.2014, introducing a new definition of "market value" under the Chhattisgarh Entry Tax (Amendment Act), 2014, effective from 01.04.2014. The assessment years in question are before this circular's issuance, constituting fresh assessments. 4. Main Issue: The primary issue raised is whether, for assessment years pre-dating the new definition of market value, the entry tax calculation should follow the old law or the amended definition. 5. Legal Precedent: The counsel acknowledges a previous judgment by the High Court in a similar case (WPT No. 157 of 2014), which determined that the circular and notification should apply prospectively, not retrospectively. 6. Application of Precedent: The State counsel confirms that the current batch of petitions align with the previous judgment in WPT No. 157 of 2014. 7. Key Difference: Unlike the previous case where reassessment was directed, these petitions involve fresh assessments. The question is whether to base calculations on pre-existing rates or the new amended provisions of market value. 8. Judicial Interpretation: Referring to the earlier judgment, the court emphasizes that the law in force during the assessment year should apply unless specified otherwise. The circular for reassessment based on the new definition of market value is deemed prospective. 9. Conclusion: Based on the legal analysis from the previous judgment, the court decides that the law as it stood before the new definition of market value should be applied for assessment years preceding the circular's issuance. 10. Outcome: Consequently, the impugned assessment orders and revisional authority decisions are quashed, along with the demand notices related to the royalty component. 11. Final Decision: All the writ petitions are allowed in favor of the petitioners based on the interpretation of the law and the application of the precedent set by the previous judgment.
|
