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2007 (9) TMI 541 - HC - VAT and Sales TaxReassessment - interpretation of words 'turnover of sales' occurring in notification nos.1093 dated 27th of July, 1991; 780 dated 31st of March, 1995 and 640 dated 21st of February, 1997, all issued under section 4-A of the U.P. Trade Tax Act - Legality and validity of the Circular No.279 dated 6.2.2003 - Held that:- Do not agree with the contention of the petitioner that "turnover of sales" used in the notifications do include stock transfer and transfer of goods from one branch to another. This being so, we find no illegality in the impugned circular dated 25.1.2003 it being in consonance with the provisions of section 4-A of the Act and the notifications thereunder are valid and legal. It can be said with reasonable certainty that stock transfer and branch transfer is not included in " on turnover of sale" in the notifications under consideration. The very initiation of reassessment proceedings is without jurisdiction as it is based upon change of opinion. It is acknowledged legal position that reassessment cannot take place on mere change of opinion and in such circumstances the reassessment is impermissible. The upshot of the above discussion is that the circular dated 25th of January, 2003 is legal and valid but on the basis of the said circular, the reassessment proceeding cannot be initiated provided the assessment was completed on the basis of the earlier circular dated 15th of September, 1998. In the result, the Writ Petition succeed and are allowed. The reassessment notices issued for the relevant assessment years are hereby quashed.
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