Parity in exemption claims requires fresh assessment; tax and penalty orders on hybrid cotton seeds were set aside for reconsideration.

Hybrid cotton seed exemption claims were held to require fresh consideration because the petitioner was similarly placed to assessees in an earlier batch where identical claims had already been directed to be reconsidered. The impugned orders denying exemption and levying tax and penalty were set aside, and the assessing authority was directed to decide the matter afresh after granting a personal hearing, following the prescribed procedure, and passing a reasoned order on merits in accordance with law and natural justice.

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Issues: Whether the impugned orders denying exemption and levying tax and penalty on hybrid cotton seeds were liable to be set aside and the matter remitted for fresh consideration.

Analysis: The petitioner's case was found to be on par with an earlier batch of matters where identical exemption claims had been dealt with. In view of that prior decision, the impugned orders could not stand without reconsideration. The matter was therefore required to be examined afresh by the assessing authority after granting full opportunity of personal hearing, following the prescribed procedure, and dealing with the petitioner's contentions in the light of the principles laid down in the earlier decision. The authority was also required to pass a reasoned order on merits and in accordance with law.

Conclusion: The impugned orders were set aside and the matter was remitted to the second respondent for fresh consideration in accordance with law and natural justice.

Final Conclusion: The writ petitions succeeded to the extent of securing remand for de novo adjudication of the tax liability and penalty issues.

Ratio Decidendi: Where a party is similarly placed to another assessee whose identical exemption claim has already been directed to be reconsidered, parity requires the assessment order to be set aside and the matter remitted for a fresh decision after observance of natural justice and reasoned adjudication.

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