Reassessment based on change of opinion fails where no fresh material supports reopening of completed trade tax assessments.

Reassessment under section 21 of the U.P. Trade Tax Act, 1948 could not rest on a mere change of opinion where the original assessments had already examined the classification and taxability of the hubs and allowed exemption on departmental material and a circular. The later notices relied on the same subject matter and a subsequent report that did not conclusively establish ineligibility for use in animal-driven vehicles or exclusive use in tractor trolleys. In the absence of fresh and cogent material with a rational nexus to escapement of turnover, the reopening was invalid and the reassessment notices were quashed.

---

---

Issues: Whether reassessment notices issued under section 21 of the U.P. Trade Tax Act, 1948 for the assessment years 1996-97 to 1999-2000 were valid when the matters had already been examined in the original assessments and no fresh material supported reopening.

Analysis: The original assessment records showed that the classification and taxability of the hubs manufactured by the petitioner, including their size, weight and use in animal driven vehicles, had been considered in detail and exemption had been allowed on the basis of the departmental material and the Commissioner's circular. The later notices rested substantially on the same subject and on a subsequent report said to indicate larger diameter and superior quality, but the report did not conclusively show that the goods were incapable of use in animal driven vehicles or meant exclusively for tractor trolleys. Reassessment under section 21 could not be founded on a mere change of opinion in the absence of fresh and cogent material having a rational nexus with escapement of turnover.

Conclusion: The reassessment notices and the initiation of reassessment proceedings were invalid and were quashed.

---