TMI Blog2005 (3) TMI 729X X X X Extracts X X X X X X X X Extracts X X X X ..... uld certainly run contrary to the prima facie object and intention to grant exemption to tyre and tube used as part of agricultural implement (i.e., cart ), cannot be accepted. Moreover, we find no apparent or reasonable ground, with reference to the object and purpose, for creating a distinction between a cart which has wheel (with tyre, tube pneumatic tyre) and one which does not have such tyre-tube, when referred to an agricultural implement . We, therefore, hold that the exemption granted to the petitioner in respect of tyre and tube, which is undoubtedly a part of cart used as agricultural implement, on alleged pretext of change of opinion by the assessing authority, does not justify reassessment and no case is made, in the facts of instant cases, to warrant exercise of reassessment by the respondents u/s 21 of the Act. In the result, the impugned orders dated February 25, 2005/ annexure 10 in W.P. (assessment year 1998-99), annexure 4 in W.P.(assessment year 1999-2000), annexure 4 in W.P. No. 457 of 2005 (assessment year 2001-02) and consequent notices are set aside. Writ petitions stand allowed. - HON'BLE YOG A.K. AND AGARWAL B.B. , JJ. For the Appellant : Bharat Ji Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er referred to certain notifications with regard to exemption from trade tax on animal driven vehicle/cart with or without tyre and tube. The Additional Commissioner further stated that keeping in mind that earlier in the relevant notification expression tyre/tube was mentioned against the article called cart and since the words tyre/tube , etc., were deleted subsequently by another Government notification, no exemption could be granted and trade tax at the rate of 10 per cent was leviable on tyre/tube sold by the petitioner in the assessment years in question. 8. The petitioner submitted his explanation/objection on February 14, 2005/annexure 9 to the writ petition. The said objection referred to relevant entries in different notifications and contended that expression cart read with other expressions in the relevant notifications, viz., parts, accessories and attachment thereof leave no scope for ambiguity and clearly included in it tyre and tube as part/attachment of cart used as ADV mentioned in the list of agricultural implement in the relevant notification; particularly Gazette notification dated January 31, 1985 and Gazette notification dated June 30, 1986 (annexures 3 and 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 reassess the dealer or tax according to law: Provided. . . Explanation I. . . Explanation II. . . Explanation III. . . (2) Except as otherwise provided in this section, no order of assessment or reassessment under any provision of this Act for any assessment year shall be made after the expiration of two years from the end of such year or March 31, 1998, whichever is later: Provided that if the Commissioner on his own or on the basis of reasons recorded by the assessing authority, is satisfied that it is just and expedient so to do, authorizes, the assessing authority in that behalf, such assessment or reassessment may be made after the expiration of the period aforesaid but not after the expiration of six years from the end of such year or March 31, 2002, whichever is later notwithstanding that such assessment or reassessment may involve a change of opinion: Provided. . . Provided. . . Provided. . . 13. Section 21(1) of the Act lays down that where the assessing authority has reason to believe that whole or any part of turnove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecord by the assessing authority, therefore, the Commissioner, under the said provision, must record his satisfaction that it is just and expedient to permit reassessment. It will ensure that such action is not arbitrary or on whims. This reflects upon the nature of the jurisdiction and fully ensures that it is not exercised on whims or arbitrarily and that a good ground, sustainable in law, exists on record to justify reassessment. 19. In the light of the above, we may examine as to whether the impugned orders dated February 25, 2005 passed by the Commissioner contain reasons recorded after application of mind, which must provide justiciable ground to initiate reassessment proceedings. 20. In the impugned orders, it is asserted that on perusing the recommendation by the Deputy Commissioner/assessing authority and objection filed by the dealer, it was possible to change opinion. There is no mention that the assessing authority was ignorant of a particular material or information which escaped his notice. Mere apprehension or passing reference that there is possibility of change of opinion, is not sufficient ground under law to confer authority upon the Commissioner to direct the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sum and likewise it must be collected by the statutory machinery. The escapement from assessment whether it results on account of a concealment practised or fraud played by the assessee or as a result of negligence or ignorance of the assessing authority, in our opinion, is of no consequence, provided the action to reopen the assessment is otherwise justified and the assessing officer is not acting arbitrarily or in a capricious manner. The escapement of assessment contemplated under that section may be due to various reasons. The terms 'turnover has escaped assessment to tax', which includes under-assessment, may as well be a result of lack of care on the part of the assessing officer or by reason of inadvertence on his part. Section 21 does not prohibit obtaining of information from the investigation of material on the record of the original assessment. The scope of that section is not circumscribed by a rider like the one that exists in section 147(a) of the Income-tax Act, 1961, namely, the Income-tax Officer has reason to believe that by reason of the omission or failure on the part of the assessee to disclose fully and truly all material facts necessary for the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DMENT. For item No. 1 of List II of the aforesaid notification, the following shall be substituted, namely: '1. Agricultural implements worked by human or animal power .................................................. Animal driven vehicles including carts having pneumatic tyre-wheels and tyres and tubes thereof, crow bars, sugarcane planters and accessories, attachments and spare parts of these agricultural implements.' II. U.P. Gazette, dated January 31, 1985 (annexure 3 to W.P.) In exercise of the powers under clause (a) of section 4 of the Uttar Pradesh Sales Tax Act, 1948 (U.P. Act No. XV of 1948), read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (U.P. Act No. 1 of 1904), and in supersession of all previous notifications issued under the aforesaid clause (a) of section 4, the Governor is pleased to exempt, with effect from February 1, 1985, the goods mentioned in column 2 of Schedule hereunder from payment of tax under the said Act of 1948, subject to the conditions, if any, specified in column 3 thereof: 1.. Agricultural implements and parts, accessories and attachments thereof, as per details given below: A Ordinary agricultural implements. ...... ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent thereof . 33. Admittedly, cart is an agricultural implement. 34. On behalf of the respondent, learned Standing Counsel submitted that deletion of the words tyre/tube and pneumatic tyre shows the intention to exclude carts with tyre/tube from exemption. 35. We are unable to accept the argument made on behalf of the respondents for more than one reason. 36. Deletion of words explanation in statutory provision does not always indicate that Legislature or its propounder intends to exclude something to provide for negative scope. On a given occasion, redundant or superfluous words/expressions which are redundant or likely to cause ambiguity, are deleted with no consequence. 37. In the case of R.D. Ram Nath Co. v. Girdhari Lal [1975] ALJ 1 (DB), in paras 9 and 10, this court, while dealing with deletion of certain Explanation in U.P. Act No. 13 of 1972, observed: 9. Learned counsel for the plaintiff-respondents, however, brought to our notice the fact that section 39 as stood initially contained an Explanation which reads 'In this section and in section 40, the expression date of commencement of this Act, in relation to a building, means 'the date on which this Act becomes ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontends that notification be read as a whole and the relevant expressions have to be read together to gather correct meaning as otherwise it will be against the accepted rule of interpretation, viz., a statute or relevant provision must be read as a whole and in the light of its reference and context. 42. The above observation is fully fortified by the ratio decidendi laid down in Government of Tamil Nadu v. Pv. Enter. Rep. By SCM Jamuludeen [2000] JT (Suppl. 3) SC 442 and Goodyear India Ltd. V. State of Haryana [1990] 76 STC 71 (SC); [1990] 2 SCC 71, wherein the apex court held that literal construction is to be avoided if it defeats the manifest object. 43. In Gopal Reddy, S. v. State of Andhra Pradesh [1996] 4 SCC 596, the honourable Supreme Court has held: it is a well-known rule of interpretation of statutes that the text and the contents of the entire Act must be looked into while interpreting any of the expressions used in the statute. The court must look to the object which the statute seeks to achieve. . . A purposive approach for interpreting the Act is necessary. . . 44. Learned counsel for the respondents, however, on the other hand drew our notice to the Gazette notifi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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