TMI Blog2010 (7) TMI 1009X X X X Extracts X X X X X X X X Extracts X X X X ..... . Both paddy and rice are declared commodity under Section 14 of the Central Sales Tax Act (hereinafter referred to as Central Act ) and are the goods of special importance and liable to tax at the point of first purchase under the notification issued under Section 3D(i) of the U.P. Trade Tax Act ( hereinafter referred to as the Act ). The petitioners claimed to have purchased paddy after paying the tax under the Act on their purchases and procured/ manufactured rice out of such paddy and such procured rice have been sold inside the State of U.P. and outside the State of U.P. in the course of inter- State sales. Under Section 8 of the Central Act, on inter-State sales of rice, tax is levied @ 4% against Form-C to the registered dealers an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of proceedings under Section 21(1) of the Act on account of change of opinion. The Division Bench held that proceeding under Section 21 could not have been initiated without any material available on record with regard to escaped assessment. However, the Division Bench further held that Section 15(c) does not provide any reduction of tax under Central Act by the tax paid on the paddy under the State law out of which rice was procured. Thus, writ petition was partly allowed. It should be appropriate to reproduce the operative portion of the aforesaid judgment (supra ) : 75 (i) Section 15(c) of the Central Act provides reduction of tax leviable on the turnover of rice under the U.P. Trade Tax Act with the tax levied on the paddy out of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essary enquiry under Section 10B of the Trade Tax, appropriate action may be taken. In pursuance to Circular, the impugned notice has been issued to petitioners. 6. Sri Hari Om Singh, learned Counsel appearing for the petitioner vehemently argued that trade tax has been repealed and substituted by U.P. Value Added Tax (hereinafter referred to as 'VAT') 2008 came into force on 1st January 2008. Since assessment has been finalized and attains finality, no proceeding could have been taken place under Section 10B of the Act. Further submission of the learned Counsel for the petitioner is that no such order may be passed by higher authorities compelling the Taxing Officer to proceed under Section 10B of the Act. Revisional power under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the petitioner that higher authority cannot direct the competent authority under taxing law to proceed in a particular manner, seems to be correct. Ho authority whosoever he may be, direct the competent or statutory authority to move in a particular manner. It is always necessary for the statutory authority/assessing authority to apply its mind independently without being influenced by the observation made by the higher authorities. Heedless to say that Taxing Officer/statutory authority under the Act are quasi judicial authorities and decide the dispute after inviting objection in response to statutory notices issued. Accordingly no inference can be drawn by the Taxing Officer to proceed compulsarily under Section 10B of the Act in pursu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cellation or any other thing done or any action taken under repealed enactment and in force immediately before such commencement shall, so far as it is not inconsistent with the provisions of this Act, be deemed to have been issued, granted, done or taken under the corresponding provisions of VAT Act. 12. Now whether only because of assessment was made earlier to 1st January, 2008, the State has no right to issue notice under Section 10B of the Act. The provision of Section 10B of the Act provides that the Commissioner or such other Officer not below the rank of Joint Commissioner as may be authorized in this behalf of the Government, may call for examination of record relating to any order passed by an Officer subordinate to him for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Clauses Act, the rights, liabilities and remedies accrued under the repealed enactment stand protected unless a contrary intention is expressed or implied in the later enactment to obliterate the earlier state of law . 15. Though learned Counsel for the petitioners tried to distinguished the judgment of Dharma Rice Mill(supra) stating that certain provisions has not been considered but being the judgment of coordinate Division Bench and keeping the finding recorded in the operative portion, it is open for this Bench to reconsider the matter on any other ground. The operative portion of the Dharma Rice Mill (supra) is reproduce as under: In view of the aforesaid facts and circumstances, we are of the considered opinion that the U.P. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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