2024 (1) TMI 442 - HC - VAT and Sales Tax

Jurisdiction of the Authorities to re-open the Assessment of Value Added Tax - HELD THAT - This Court having gone through the judgement dated 06.11.2023 rendered by Hon'ble Supreme Court 2023 (11) TMI 298 - SUPREME COURT , a copy of which has been provided, is of the opinion that it is not contended by the State Respondents that the jurisdiction to re-open was exercised for some other reason except for the judgement rendered by this Court in Commissioner of Commercial Tax, U.P. Lucknow Vs. Modi Natural Ltd., Bisalpur Road, Bareilly 2019 (5) TMI 1087 - ALLAHABAD HIGH COURT , which has already been set aside by Hon'ble Apex Court, therefore, this Court finds it appropriate to quash the impugned notices issued under Section 29(7) of the U.P. Value Added Tax, 2008 for the Assessment Years 2011-2012 to Assessment Years 2016-2017, in so far as petitioners are concerned. The approval that was granted by the Additional Commissioner for re-opening the Assessment under Section 29(7) of the Act also stands quashed. The writ petitions stand allowed.

Summary

Issues:
The jurisdiction of Authorities to re-open the Assessment of Value Added Tax from Assessment Year 2011-2012 to 2016-2017.

Summary:
The petitions involved a question of law regarding the jurisdiction of Authorities to re-open the Assessment of Value Added Tax, previously completed from Assessment Year 2011-2012 to 2016-2017. The Assessments were sought to be re-opened based on a decision by the Allahabad High Court in a previous case, which limited the Input Tax Credit (ITC) claim for a specific company. However, the Supreme Court later overturned this decision, ruling that full benefit of ITC should be given to the Assessee.

During the pendency of related proceedings, the Allahabad High Court stayed re-opening proceedings in most cases, except for those where final Assessment had already been made. The petitioner argued that since the Supreme Court had set aside the previous judgment, all re-opening proceedings should be quashed. After reviewing the Supreme Court's judgment, the High Court agreed that the re-opening was solely based on the now-overturned decision, leading to the quashing of the re-opening notices and the approval granted for re-opening the Assessments.

In conclusion, the High Court allowed the writ petitions, finding it appropriate to quash the impugned notices issued for the Assessment Years 2011-2012 to 2016-2017, as the jurisdiction to re-open was exercised solely based on the now-invalidated judgment.