2023 (4) TMI 319 - SCH - VAT and Sales Tax

High Court Upholds Re-Assessment Decision, Dismisses Petition

The High Court held that re-opening assessments solely due to a change in law was not justified, aligning with previous decisions. The re-assessment order ... Reassessment where original assessment is sought to be superseded on the ground that it was erroneous - change of opinion on the basis of subsequent decision, where different view adopted - taxability of sale of mobile phones in the state of Uttar Pradesh - It was held by HC [2016 (12) TMI 630 - ALLAHABAD HIGH COURT] where it was held that This writ petition has to be allowed with cost as law is well settled that assessment once having become final should not have been reopened on the basis of judgment of the Apex Court which has no applicability to the facts of this case and is in ignorance of factual position as is very clear from facts - HELD THAT:- The SLP is dismissed. Seeking withdrawal of petition - seeking appellate remedies available in law in respect of the re-assessment order - HC [2019 (9) TMI 1153 - RAJASTHAN HIGH COURT] held that It certainly cannot be said to be a case of inherent lack of jurisdiction. Aside of the fact whether or not the re-assessment order could have been legally passed, the appellants cannot be allowed to contend that such orders have been passed dehors the principles of natural justice - HELD THAT:- The special leave petition is dismissed as withdrawn. List [2015 (12) TMI 239 - PUNJAB AND HARYANA HIGH COURT] and [2016 (12) TMI 1897 - PATNA HIGH COURT] along with these petitions subject to orders of Hon’ble the Chief Justice of India as it is submitted that the same questions of law arise. Issues involved:The issues involved in the judgment are the exercise of power under Section 29A of the U.P. Value Added Tax, 2008 to re-open completed assessments, the justification for re-opening assessments based on a change of law, and the applicability of specific judgments in determining the validity of re-assessment orders.U.P. Value Added Tax, 2008 - Re-opening of Assessments:The Additional Commissioner of Value Added Tax utilized the power under Section 29A of the U.P. Value Added Tax, 2008 to issue a notice for re-opening completed assessments. The notice was issued based on the judgment in 'State of Punjab and Others vs. Nokia India Pvt. Ltd.' which clarified the nature of a phone charger and cellphone as not constituting a composite unit. The High Court concluded that the re-opening of assessment solely due to a change in law was not justified, aligning with the view expressed by the Court in 'State of Uttar Pradesh & Others vs. Aryaverth Chawal Udyog and Others.' The impugned order was deemed acceptable in this regard, leading to the dismissal of the special leave petition with certain observations.Costs and Other Findings:While the direction to pay costs was set aside, the judgment also contained findings on the applicability of certain judgments that were deemed unnecessary by the Court. These additional findings were considered redundant in light of the invalidity of the re-assessment, thus highlighting the significance of the primary issue regarding the justification for re-opening assessments based on a change of law.Separate Judgement - Rajasthan High Court:In a separate matter before the Rajasthan High Court, the petitioner sought liberty to withdraw the petition and pursue appellate remedies concerning the re-assessment order. The request for withdrawal was granted, and the special leave petition was dismissed accordingly. The proceedings in other related matters were partially heard, with a compilation provided by Mr. Lakshmikumaran being accepted as part of the record.Listing of Related Matters:Further, S.L.P.(C) No. 34917 of 2015 from the Punjab and Haryana High Court and C.A. No. 6368-6369 of 2017 from the Patna High Court were directed to be listed alongside the ongoing petitions, subject to the orders of the Chief Justice of India. It was noted that similar legal issues were involved in these cases, and counsel for the parties would be informed in advance about the listing scheduled for 28.03.2023.