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2014 (8) TMI 141 - HC - VAT and Sales TaxRe opening of assessment - Jurisdiction of Additional Commissioner - Tangible basis for reopening of assessment - Taxability of containers made of plastic @ 8% at the point of sale by a manufacturer or importer by virtue of a notification dated 5 February 2003 - Held that:- It is clear that the notification dated 5 February 2003 refers to plastic buckets, plastic basins, plastic soap case, plastic plates and "other wares and containers made of plastic", amongst other things. The notification does not qualify the expression "containers made of plastic" by the words 'non disposable'. Merely because the notification does not use the expression "disposable containers made of plastic" would not furnish any ground to the Additional Commissioner to permit a reopening of assessment. The Assessing Authority had duly applied its mind to the business activities of the petitioner and as the assessment order would indicate, the authority was conscious of the position that the petitioner manufactures disposable containers. In this view of the matter, there was absolutely no tangible material before the Assistant Commissioner to issue an authorization and the initiation of proceedings would have to be held as being contrary to law. Tax administration must be based on the principles of certainty and stability. Certainty and stability ensure objective, fair and accountable decision making procedures which are fundamental requirements of equality before law under Article 14 of the Constitution. Uncertainty produces chaos and renders the decision making process whimsical and arbitrary. This negates the fundamental right under Article 14 which is a guarantee against non arbitrariness. The precepts of Article 14 can and should be used not only to test the validity of legislative or administrative action but also to enhance that interpretation of the law which will render its administration and implementation fair. The proviso to sub-section (2) of Section 21 lifts the bar of time. But it cannot be construed to confer an unguided or subjective power to the Commissioner to authorise reopening of concluded assessments. The interests of the revenue have to be protected, but the guiding principle is whether the requirements of sub-section (1) are attracted. For that to happen, there must be tangible material. Tangible material ensures that the power is not exercised arbitrarily but for valid reasons contemplated by the statute. - Decided in favour of assessee.
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