TMI Blog2017 (5) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... sential condition for exercising the power of re-assessment. Apart from the fact that the assessing authority has subsequently come to the conclusion that the air ventilators in which the petitioner deals were not taxable as a classified items at the rate of 5% but as un-classified item at the rate of 13.5% is nothing but a change of opinion on the allegation that the order of assessment was passed without application of mind. The assessing authority is not vested with any power to review its order or an order of assessment. The assessment order passed by the assessing authority is only open for re-assessment subject to fulfilment of the essential conditions as laid down under Section 29 of the U.P. VAT Act. The power of re-assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 the petitioner was assessed to tax on the turnover of sale of the aforesaid air ventilators at the rate of 5% by treating it to be a classified item no. 97 of Schedule II of Part A of the U.P. VAT Act. The petitioner has now been served with an order dated 21st November, 2016 purported to be have been passed under Section 29(7) of the U.P. VAT Act granting permission for re-assessment on the ground that the turnover of sale of the air ventilators has escaped assessment as tax at the lower rate of 5% instead of 13.5% was charged. Consequently, notices for re-assessment dated 8th December, 2016 have also been issued. The aforesaid order dated 21st November, 2016 granting permission for re-assessment to the assessing authority and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to believe is an essential condition for exercising the power of re-assessment. The re-assessment proceedings are ordinarily undertaken within three years from the end of the relevant assessment year as laid down under Section 29 (3) of the U.P. VAT Act but they can also be initiated subsequent to the above period of three years but before expiry of 8 years from the end of the relevant assessment year subject to permission by the Commissioner as contemplated under Section 29 (7) of the U.P. VAT Act. Notwithstanding the period of limitation and the permission granted by the Commissioner, the existence of reason to believe that the turnover has escaped assessment continues to be a mandatory condition for drawing the proceedings for re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssified item at the rate of 13.5% is nothing but a change of opinion on the allegation that the order of assessment was passed without application of mind. It is also relevant to mention here that the assessing authority is not vested with any power to review its order or an order of assessment. The assessment order passed by the assessing authority is only open for re-assessment subject to fulfilment of the essential conditions as laid down under Section 29 of the U.P. VAT Act. The power of re-assessment is quite different and distinct from that of review or of the appellate power. Therefore, the assessing authority cannot utilize the power of re-assessment in the ordinary course as if it is sitting in review or in appeal over his own o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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