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2013 (11) TMI 1516 - HC - VAT and Sales TaxReassessment of proceedings - Change of opinion - Wrong applicability of rate of tax - Held that:- Assessing authority has not recorded any finding or had taken view either way as to whether VCD and DVD players, would attract tax at the rate of 12 per cent. under entry 75(i)(a) or at the rate of eight per cent. in the residual entry 75(ii), (iii). The assessing authority simply accepted the return filed by the assessee, and agreed that there was an error in respect of some of the consignments in which tax was erroneously charged at the rate of 12 per cent. He did not express any opinion with regard to taxability of the items so as to accept the argument that the proceedings of reassessment were based on change of opinion. - The order of the Commissioner under section 35 of the Act would form the material, the basis on which the reassessments proceedings have been initiated is the wrong application of rate of tax by the assessing authority. The order of the Commissioner may not be conclusive in that regard but would definitely be a material to initiate proceedings under section 21(2) of the Act. It will be open to the petitioner to establish by producing all such material, which may be relevant that VCD and DVD players are based on different technology and would not fall within the category of entry 75(i)(a), for the purpose of rate of tax, in the proceedings for reassessment. - Decided against assessee.
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