Residuary classification and reassessment reopening failed where disinfectant products were already assessed under the correct VAT entry.

Harpic and Mortein Coil were treated as disinfectants/insecticides/pesticides based on their composition, laboratory reports, statutory treatment under drugs and cosmetics law, HSN guidance, and consistent precedent, so they fell under Entry 20 of Schedule II, Part A of the UPVAT Act rather than the residuary Schedule V. Reassessment under section 29(7) was found to rest only on a change of opinion because the original assessment had already considered the relevant material and no fresh tangible material was shown to support a reason to believe that turnover had escaped assessment. The reassessment proceedings were therefore held invalid and the reopening order was quashed.

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Issues: Whether the reassessment initiated under section 29(7) of the UPVAT Act was valid when Harpic and Mortein Coil had already been assessed at the lower rate under Entry 20 of Schedule II, Part A, and whether the goods were classifiable under the residuary entry of Schedule V.

Analysis: The goods in dispute were found to be disinfectants/insecticides/pesticides on the basis of their composition, laboratory reports, statutory treatment under the Drugs and Cosmetics law, HSN guidance, and consistent judicial precedent. Harpic and Mortein Coil were held to fall within Entry 20 of Schedule II, Part A of the UPVAT Act, and not within the residuary Schedule V. Since the original assessment had considered the relevant material and no fresh or tangible material was shown to justify reopening, the initiation of reassessment was held to rest only on a change of opinion. Such reopening was held impermissible in the absence of a valid reason to believe based on escaped assessment.

Conclusion: The reassessment proceedings were invalid and the impugned order reopening the assessment was quashed.

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