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TMI Blog2015 (8) TMI 1131X X X X Extracts X X X X X X X X Extracts X X X X ..... forging of steel and metal fabricated goods. The petitioner is also doing job works for other parties on the basis of labour charge. For the assessment year 2009-10 under the U.P. Value Added Tax an assessment order dated 9th April, 2013 was passed in which a rebate of entry tax on sale of forging was granted. Subsequently, a notice under Section 29 (7) of the Act was issued proposing to make a re-assessment for the assessment year 2009-10. Since no reply was received, the appropriate authority granted permission to the assessing authority to initiate proceedings for re-assessment under Section 29 of the Act. The petitioner being aggrieved by the issuance of the notice and the granting of the permission by the Additional Commissioner, Gau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th Chawal Udyog & others Vs. State of U.P. & others 2008 NTN (Vol. 37) page 231. On the other hand, Sri C.B. Tripathi, the learned counsel for the State has relied upon the decision of Honble Supreme Court in The Commissioner of Sales Tax, U.P. Vs. Bhagwan Industries (P) Ltd., Lucknow AIR 1973 SC 370 which postulated the theory with regard to "reasons to believe" and the rational basis for the assessing authority to form an opinion that the whole or any part of the turnover of a dealer for any reasons escaped assessment to tax for a particular year. The Supreme Court held that if such basis exist, the assessing authority was justified in proceeding in the manner laid down in the section. The Supreme Court held: "The controversy between th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority would be clothed with jurisdiction to take action under the section. Whether the grounds are adequate or not is not a matter which would be gone into by the High Court or this Court, for the sufficiency of the grounds which included the assessing authority to act is not a justiciable issue. What can be challenged is the existence of the belief but not the sufficiency of reasons for the belief. At the same time, it is necessary to observe that the belief must be held in good faith and should not be a mere pretence." In M/s Shyam Babu Vausgta and company and another Vs. Assistant Commissioner of Trade Tax, Khand-2 Banda and others 2004 UPTC 210 a Division Bench of this Court held that the term "turn over has escaped assessment to ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to whether enzyme is a chemical or not and, consequently, whether it is liable to be taxed at the rate of 4% or as an unclassified item at the rate of 10%." Section 4 (6) of the U.P. Tax on Entry of Goods Into Local Areas Act, 2007 provides as under: "Notwithstanding anything to the contrary contained in sub-section (1) or sub-section (3), no tax shall be levied on or collected from a dealer, who brings or causes to be brought into a local area any goods which are- (i) consigned without using them in the local area to any place outside the State; or (ii) sold or re-sold either in the course of inter-State trade or commerce or in the course of export out of the territory of India; EXPLANATION-Section 3, Section 5 and Section 6A of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deductions or exemptions have been wrongly allowed in respect thereof, the assessing authority may, after issuing notice to the dealer and making such inquiry as it may consider necessary, assess or re-assess the dealer to tax according to law : Provided that the tax shall be charged at the rate at which it would have been charged had the turnover not escaped assessment or full assessment as the case may be. Explanation I:- Nothing in this sub-section shall be deemed to prevent the assessing authority from making an assessment to the best of its judgment. Explanation II:- For the purpose of this section and of section 31, "assessing authority" means the officer or authority who passed the earlier assessment order, if any, and includes t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... requires evidence. In the light of the aforesaid, we are of the opinion that there was sufficient reasons to believe for the assessing authority to seek permission for reopening the assessment. The belief was based on valid and cogent reasons. We are of the opinion that in the instant case, re-assessment on the same material was permissible for valid reasons inasmuch as we find that there was no discussion or any finding as to whether in the given case rebate was permissible to the petitioner. Consequently, we do not find any reason to interfere in the impugned notice issued under Section 29 (7) of the Act. The writ petition fails and is dismissed at the admission stage itself. It would, however, be open to the petitioner to place all mat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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