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2015 (8) TMI 740 - CHHATTISGARH HIGH COURTReassessment - levy of entry tax - Respondents in original assessment, did not impose tax in matter of purchase of MS steel scrap from seller, who did not make any endorsement that said goods were local goods and not tax paid – Later respondent authorities issued notices under section 28(1) Commercial Tax Act, 1994 and imposed penalty for escaping assessment – Held that:- Admitted that petitioner purchased M. S. steel scrap and while selling those goods, petitioner did not declare goods as local goods – Under Act, 1976, entry tax was leviable on entry of goods in local area for consumption, use or sale therein – Incidence of taxation was not sale and purchase but entry of goods into local area and tax was to be paid by dealer who has effected entry of goods – Once iron and steel items were subjected to entry tax, steel scrap which was generated out of repair and maintenance, in absence of any endorsement, would not create any liability for payment of entry tax by its purchaser – In absence of any such declaration by seller, there was no liability cast on petitioner under section 3 of Act to pay entry tax in respect of purchases made – Assessing authority during original assessment, despite all details, did not form any opinion that goods purchased by petitioner were different items manufactured by seller, thus, were local goods within its meaning – Once it was held that basis for reassessment was change of opinion, such reassessment was impermissible under law, as laid down in case of Sales Tax Officer, Ganjam v. Uttareswari Rice Mills [1972 (9) TMI 109 - SUPREME COURT OF INDIA] – Reassessment proceedings on ground that purchase has escaped assessment, was clearly illegal and unsustainable in law in view of authoritative pronouncement of Supreme Court in case of Commissioner of Income-tax v. Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT OF INDIA] – Reassessment orders set aside – Decided in favour of Assesse.
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