2009 (8) TMI 1146 - HC - VAT and Sales Tax

Summary

Issues Involved:
Multiple writ petitions filed for quashing orders and reassessment proceedings u/s 21(2) of U.P. Trade Tax Act for various Assessment Years.

Writ Petition No. 493 (Tax)/06 and 494 of 2006:
Petitioner, a commission agent, purchased paddy on behalf of Ex U.P. Principals. Admitted tax liability on some purchases but claimed exemption on others. Additional Commissioner granted permission for reassessment without providing reasons. Court held lack of reasoning renders the order unsustainable. Citing precedent, the order was set aside, along with consequential reassessment notices.

Writ Petition No. 613 (Tax) of 2006:
Similar to above, sought quashing of order and reassessment proceedings for the Assessment Year 1999-2000 (U.P.). Order lacked reasons, leading to its setting aside by the Court.

Writ Petition No. 328 (Tax) of 2007 and Writ Petition No. 318 (Tax) of 2007:
Initially filed to challenge orders and reassessment for the Assessment Year 2000-01. Subsequently, reassessment orders dated 14.3.2007 were challenged. Court set aside these reassessment orders as well.

Writ Petition No. 394 (Tax) of 2007:
Filed to quash order and reassessment proceedings for the Assessment Year 1999-2000. Lack of reasons in the order led to its setting aside by the Court.

Writ Petition No. 395 (Tax) of 2007:
Challenged order and reassessment proceedings for multiple Assessment Years. Court set aside the order due to absence of reasons provided by the Additional Commissioner.

Conclusion:
Court set aside all impugned orders and reassessment notices due to lack of reasons provided by the Additional Commissioner, emphasizing the necessity of recording reasons for granting permission under Section 21 of the Act. The Additional Commissioner was directed to pass a fresh order within three months, ensuring compliance with the law and providing opportunity to the petitioners.