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2009 (7) TMI 1195 - HC - VAT and Sales TaxEnhancement of the rate of tax to 16 per cent from ten per cent for the paper based laminated sheets - Held that:- It is an admitted fact that there was ambiguity/doubt with regard to the collection of tax on paper based laminated sheets to the respondents, i.e., whether tax is leviable at ten per cent or 16 per cent. Till May 30, 2008, the tax leviable was only ten per cent even according to the respondents and the petitioners have also paid the said rate of tax for their sales turnovers. Since the respondents were not firm in their view with regard to collection of tax, viz., percentage of tax, the benefit of doubt should be extended to the assessees, particularly when it is pleaded by the petitioners before this court that they have not collected more than ten per cent of tax while selling the paper based laminated sheets.It is also well-settled that if there is ambiguity with regard to the rate of tax to be collected, the benefit should go to the assessee. The contention of the learned counsel for the respondents that the writ petitions filed challenging the reassessment notice to reopen the assessment is not maintainable as the writ petitions are premature in nature, cannot be sustained. Similarly, the revised orders passed are also bad in law. Admittedly, the second respondent issued the notice to reopen the assessments already finalised based on the clarification of the first respondent dated May 30, 2008. Once the clarification itself is found untenable and also found not having any retrospective effect, the second respondent is not justified in issuing the impugned notices to the petitioner for reopening the already finalised assessments as well as to pass reassessment orders. In view of the said findings the objections raised by the respondents to maintain the writ petition challenging the notices are also untenable.The writ petitions are allowed.
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