Reassessment for taxability of inverters upheld where original assessments had no finding and no change of opinion was shown.

Reassessment under Section 21(2) of the U.P. Trade Tax Act was not barred by change of opinion where the original assessment orders contained no finding on whether inverters fell within the entry of electronic goods. In the absence of any prior adjudication on that taxability question, the Assessing Authority was entitled to examine the issue in reassessment on the basis of the product specifications. A commissioner's circular that merely directed authorities to consider the issue did not finally determine taxability or invalidate the reassessment process. The reassessment proceedings, and the related permission order, notice and challenge to the circular, were upheld as valid.

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Issues: Whether the reassessment proceedings initiated under Section 21(2) of the U.P. Trade Tax Act and the consequential permission and notice were liable to be quashed on the ground of change of opinion in respect of the taxability of inverters as electronic goods.

Analysis: The original assessment orders contained no discussion or finding on whether inverters fell within the entry of electronic goods. In the absence of any earlier adjudication on that point, the reassessment could not be characterised as a mere change of opinion. The question whether inverters were electronic goods required examination on the basis of their specifications and could properly be gone into by the Assessing Authority in reassessment proceedings. The circular issued by the Commissioner was also only a general direction to examine the issue and did not finally decide the taxability question.

Conclusion: The reassessment proceedings were valid and the challenge to the circular, permission order, and notice failed.

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