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TMI Blog2015 (10) TMI 1108X X X X Extracts X X X X X X X X Extracts X X X X ..... or initiation of proceedings under Section 21 of the Act by the Assessing Authority for the Assessment Years in question becomes non-existent - there was no relevant material before the Assessing Authority giving rise to prima facie inference that some turnover of the petitioners has escaped assessment to tax. Consequently, the impugned authorisation orders as well as notices under Section 21 of the Act issued by the Assessing Authority are without jurisdiction and, therefore, deserve to be quashed. - Decided in favour of assessee. - Writ Tax No. - 464 of 2010, Writ Tax No. – 478, 387, 520 of 2011 - - - Dated:- 4-9-2015 - Hon'ble Tarun Agarwala And Hon'ble Surya Prakash Kesarwani, JJ. For the Petitioner : Kunwar Saksena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght of oxygen would produce 81 atomic weight unit zinc oxide and consequently, the petitioner would have produced zinc oxide in the above ratio, but, lesser production has been shown and thus, some quantity of zinc oxide has escaped assessment to tax. 4. The petitioner of writ petitions mentioned above at serial No.4 5 is engaged in manufacture and sale of Red Lead and Lead Ingot, from lead and oxygen as raw material. The original assessment orders were passed, in which, the production as disclosed by the petitioner was accepted by the Assessing Authority. Subsequently, Assessing Authority sent a proposal to the Additional Commissioner, Grade-I, Commercial Tax, Etawah Zone, Etawah for authorisation under the proviso to Section 21(2) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity, the Appellate Authority in the previous and subsequent assessment years to support his submissions. He submits that there is no dispute with regard to the formula referred by the respondents but that cannot be theoretically applied without considering the quality of raw material purchased by the petitioners to manufacture the final product. 7. Learned special counsel for the respondents submits that the chemical formula which has been referred and relied in the order of authorisation, was neither discussed nor noticed by the Assessing Authority, while passing the assessment orders for the relevant Assessment Years and, thus, the assessment orders were passed without application of mind and in ignorance of the said formula, which est ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... All.) (para-35). 8. We have carefully considered the submissions for the learned counsel for the parties and perused the records. 9. We find that in the first three writ petitions filed by M/s United Chemical Industries, reassessment proceedings have been initiated by the Assessing Authority for the Assessment Year 2003-04 (U.P. and Central), Assessment Year 2004-05 (U.P. and Central) and Assessment Year 2005-06 (U.P. and Central) respectively. 10. During the course of assessment proceedings for these assessment years, the petitioners produced before the Assessing Authority their entire books of accounts, namely, cash book, Journal book, sales register, purchase register, stock register of raw material, finished goods, trade goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch was allowed by the Joint Commissioner (Appeal), Commercial Tax, Etawah and the production figures of the petitioner were accepted, vide order dated 3rd December, 2009. Being aggrieved, the department preferred Second Appeal No.77 of 2010, which was dismissed by the Commercial Tax Tribunal, Bench-1, Agra, vide order dated 27th July 2011. For the Assessment Year 2007-08 (U.P. and Central), the Assessing Authority again disbelieved the production of zinc oxide for the same set of reasonings. Being aggrieved, the petitioner preferred Appeals No.69 of 2011 and 70 of 2011 for A.Y. 2007-08 (U.P. and Central), which were also allowed by the Additional Commissioner, Grade-II (Appeal), Commercial Tax, Manpuri, vide order dated 30th November, 2011. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inc oxide would depend upon the quality of raw material. In view of these facts, the very foundation for initiation of proceedings under Section 21 of the Act by the Assessing Authority for the Assessment Years in question becomes non-existent. 13. In view of the above discussion, we are of the view that there was no relevant material before the Assessing Authority giving rise to prima facie inference that some turnover of the petitioners has escaped assessment to tax. Consequently, the impugned authorisation orders as well as notices under Section 21 of the Act issued by the Assessing Authority are without jurisdiction and, therefore, deserve to be quashed. 14. In result, all the writ petitions succeed and are hereby allowed. The imp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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