TMI Blog2019 (3) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... eding, whatsoever, has been undertaken by the excise authorities, nor has levied any duty, tax or imposed penalty upon the petitioner. The basis of reassessment proceedings initiated by the respondents – authorities is only the survey/search conducted by the DGCEI, New Delhi and no further action or order has been passed or brought on record by the respondents - The jurisdiction to initiate reassessment proceedings arises only after the Assessing Authority records his reason to believe that any turnover has escaped assessment. Thus, not only is the belief of escapement essential, but, more importantly, it is necessary for the Assessing Authority to record his reason(s) as to existence of the belief of such escapement - In the present cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial Tax, Meerut Zone, Meerut dated 01.08.2018 and consequential reassessment notices dated 16.08.2018 issued by the Joint Commissioner, Corporate Cell, Commercial Tax, Meerut under section 28(2) read with section 29(7) of the VAT Act. The facts of the case, in brief, are that the petitioner is a Company incorporated under the Indian Companies Act, 1956. It is duly registered under U.P. VAT Act as well as the Central Sales Tax Act and carrying on the business of manufacturing and sale of ingots made of iron steel and runner riser falling under Chapter 72 of the 1st Schedule to the Central Excise Tariff Act, 1985 and section 14 of the Central Sales Tax Act. The original assessment orders for the Assessment Years 2011-12 and 2012-13 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted a detailed objection/reply on 10.02.2016 before the Additional Director General (Adjudication), DGCEI, New Delhi. Thereafter, the reassessment proceedings have been initiated against the petitioner and a notice dated 05.04.2018 was issued by the respondent no. 1 proposing to reopen the completed assessment for the Assessment Years 2011-12 2012-13 on the basis of an information received from the Deputy Commissioner (SIB), Commercial Tax, Muzaffarnagar, inter alia , stating that the survey was conducted on 11.07.2013 at the business premises of the petitioner and on 04.07.2013, at the business premises of M/s TISCL, in which certain discriminatory materials were found. The petitioner filed a detailed reply of the said notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the law. It has further been argued that under the garb of reassessment proceedings, the authorities cannot be permitted to make a fishing or roving inquiry. The reassessment proceedings have only been initiated on the basis of survey conducted by the excise authorities, i.e., DGCEI, New Delhi, at the business premises of M/s TISCL on 04.07.2013 and thereafter, at the business premises of the petitioner on 11.07.2013. Detailed reply of the notices had been submitted by the petitioner and no further action was taken against the petitioner. Neither any tax or duty or penalty has been imposed, nor has been served with any order and therefore, the initiation of the proceedings, only on the basis of the said proceedings, is not permi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings initiated by the respondents authorities is only the survey/search conducted by the DGCEI, New Delhi and no further action or order has been passed or brought on record by the respondents. The jurisdiction to initiate reassessment proceedings arises only after the Assessing Authority records his reason to believe that any turnover has escaped assessment. Thus, not only is the belief of escapement essential, but, more importantly, it is necessary for the Assessing Authority to record his reason(s) as to existence of the belief of such escapement. In the present case, the respondents, while making proposal for reassessment, record their reason to the effect that survey has been conducted by the Central Excise authorities at t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so cogent or germane to the belief of escapement, if any. In fact there neither exists a belief with the petitioner's assessing authority as to escapement of turnover nor there exist any reason to justify a belief of escapement. The initiation of reassessment proceedings against the petitioner is based on presumptions devoid of factual basis or reasonable ground germane to the formation of belief regarding escaped turnover. 37. To allow the respondents to reassess the petitioner in the present facts would allow the State to make an inquiry into the facts on which its authorities have not entertained a reason to believe inasmuch as the sanction order and the proposal containing the belief do not even remotely suggest that the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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