Reassessment on tax classification upheld where no prior opinion existed and Commissioner's order could support reopening.

Reassessment under section 21(2) of the U.P. Trade Tax Act was not barred by change of opinion because the assessing authority had not formed any prior view on whether DVD and VCD players fell under entry 75(i)(a) at 12% or the residual entry 75(ii) at 8%. The original assessment was treated as acceptance of the return, not a conscious determination on classification. The Commissioner's order under section 35, though not conclusive against the assessee, could supply material for reopening. The reassessment notice was therefore valid, while the assessee remained free to contest the higher rate in reassessment on the basis of technical and classification evidence.

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Issues: Whether reassessment proceedings initiated under section 21(2) of the U. P. Trade Tax Act, 1948 were vitiated by change of opinion and whether the Commissioner's order under section 35 could constitute material for reopening.

Analysis: The assessing authority had not recorded any prior finding or formed any view on whether DVD and VCD players were taxable under entry 75(i)(a) at 12% or under the residual entry 75(ii) at 8%. The original assessment reflected acceptance of the return, not a conscious opinion on the point in dispute. The Court further held that the Commissioner's order under section 35, though not conclusive against the assessee, could constitute material to initiate proceedings under section 21(2). The assessee was left free to contest the applicability of the higher rate in the reassessment proceedings by producing relevant material on technology and classification.

Conclusion: The reassessment notice was not invalid on the ground of change of opinion, and the initiation of proceedings under section 21(2) was upheld.

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