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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 ..... g such inquiry, assess or re-assess dealer to tax according to law – In original assessment order there was no discussion or any finding as to how rebate was permissible to petitioner – If any manufacturing activity was carried on, rebate was not permissible – What would be effect of forging was left open to be decided in assessment proceedings as it requires evidence – There was sufficient reasons to believe for assessing authority to seek permission for reopening assessment – No reason to interfere in impugned notice issued – Petition dismissed – Decided against Assesse. - Writ Tax No. - 544 of 2015 - - - Dated:- 14-7-2015 - Hon'ble Tarun Agarwala And Hon'ble Surya Prakash Kesarwani,JJ. For the Petitioner : N.C. Gupta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned counsel for the petitioner is, that there was no fresh material before the assessing officer to have any reasons to believe that any tax had escaped assessment which required issuance of a notice inviting re-assessment. The learned counsel further contended that apart from the fact that there was no fresh material, the issuance of notice was based on the same material which was already existing and, consequently, it was a change of opinion which was not permissible. In support of his submission the learned counsel has relied upon the decision in 2011 TLD (1) Dabur India Ltd, Ghaziabad Vs. State of U.P. and another, wherein the Court held that there being no fresh material, the assessing officer could not initiate reassessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used in the section. In our opinion, these words convey that there must be some rational basis for the assessing authority to form the belief that the whole or any part of the turnover of a dealer has, for any reason, escaped assessment to tax for some year. If such a basis exists, the assessing authority can proceed in the manner laid down in the section. To put it differently, if there are, in fact, some reasonable grounds for the assessing authority to believe that the whole or any part of the turnover of a dealer has escaped assessment, it can take action under the section. Reasonable grounds necessarily postulate that they must be germane to the formation of the belief regarding escaped assessment. If the grounds are of an extraneous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Baer India Ltd. Vs. State of U.P. and others 2014 NTN (vol. 55) page 26 another Division Bench held that if the exemption was wrongly allowed, it would be permissible to reopen the re-assessment proceedings and such re-opening would not amount to change of opinion. The learned counsel for the State has further relied upon a decision in Catalysts Vs. State of U.P. and others 2014 NTN (Vol. 55) page 360 wherein the Court held as follows: The contention that no reassessment proceedings can be made on the same material is incorrect. Reassessment on the same material can be permitted for valid reasons. In the instant case, we find that in the original assessment proceedings there has been no discussion nor any finding has been given as to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntity or value of goods to be sold within such local area for the purpose of being taken outside the State without consumption, use or sale in such local area, is not ascertainable, the dealer shall pay the amount of tax on the value of total quantity of goods and after the goods are consigned or sold outside or in the course of, export, the dealer may claim refund or adjustment of the amount so paid as tax in the month in which such goods are transferred outside the State or sold in the course of inter-State trade or commerce or the course of export, in respect of such goods. From a perusal of the aforesaid it is clear that if the goods are brought into the local area and sold in the same form in the course of inter state trade or comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be effective as such, until varied by an order of assessment or reassessment made under this section in pursuance of such notice. From a perusal of the aforesaid we find that if the assessing authority has reasons to believe that the whole or any part of turnover had escaped assessment or any deduction or exemption had wrongly been allowed, the assessing authority may after issuing a notice to the dealer and after making such inquiry, as it may consider necessary, assess or re-assess the dealer to tax according to law. The words any deduction or exemptions have been wrongly allowed would, in our opinion, also include a rebate which has wrongly been allowed. We have perused the assessment order and we find that there is no discussio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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