Final reassessment and surcharge demand cannot be reopened merely because a later Supreme Court view differs.

Orissa HC held that a concluded reassessment could not be reopened through a later recomputation of surcharge for the same assessment period merely because a subsequent Supreme Court ruling took a different view. The earlier reassessment, which had computed surcharge after set-off of entry tax against OST payable, had attained finality and was never challenged by the Department. On that basis, the fresh demand based on recomputation was unsustainable and was quashed.

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Issues: Whether the impugned recomputation of surcharge and the consequential demand for the assessment period 2002-03 could be sustained when the earlier reassessment had attained finality and had not been challenged by the Department.

Analysis: The earlier reassessment order computing surcharge on the basis of set-off of entry tax against OST payable had become final. The Department did not challenge the reassessment order, though a related challenge was taken in the matter concerning Bajaj Auto Ltd. The impugned order was passed later only to recompute surcharge on the basis of the subsequent Supreme Court decision. In these circumstances, the settled reassessment could not be reopened by issuing a fresh demand on the same period.

Conclusion: The recomputation of surcharge and the corresponding demand were not sustainable and were quashed.

Ratio Decidendi: A concluded reassessment that has attained finality cannot be reopened by a later recomputation of surcharge merely because a subsequent decision takes a different view, especially when the earlier order was never challenged by the Department.

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