Charging provision controls definition clause as entry tax reassessment fails for mere change of opinion and no fresh material.

The charging provision under the Karnataka Tax on Entry of Goods Act was treated as controlling, so the phrase "prevailing market price of such goods in the local area" in the definition clause was read down to mean the value at the time of entry into the local area and not later market fluctuations or sale price. Reassessment under Section 6(2) was held unsustainable because it rested on the same material already examined and amounted to a mere change of opinion, without fresh material or statutory grounds. The writ petition was not barred by the alternative appellate remedy where the challenge raised jurisdictional and construction issues.

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Issues: (i) Whether the expression "prevailing market price of such goods in the local area" in Section 2A(8-a) of the Karnataka Tax on Entry of Goods Act, 1979 conflicts with the charging provision in Section 3(1), and if so, how it must be construed; (ii) Whether the reassessment notices and assessment orders were valid under Section 6(2) of the Karnataka Tax on Entry of Goods Act, 1979; (iii) Whether the reassessment was impermissible as a mere change of opinion; (iv) Whether the petitioner should be relegated to the statutory appellate remedy.

Issue (i): Whether the expression "prevailing market price of such goods in the local area" in Section 2A(8-a) of the Karnataka Tax on Entry of Goods Act, 1979 conflicts with the charging provision in Section 3(1), and if so, how it must be construed.

Analysis: The charging provision was treated as the substantive levy provision, while the definition clause was required to operate in harmony with it. The Court held that entry tax is anchored to the value of goods at the time of entry into the local area, and that the expression in the definition clause cannot be read in a manner that permits taxation on later market fluctuations or sale price. Applying the principle of reading down, the disputed words were construed to mean the value of the goods at the time of entry into the local area.

Conclusion: The expression in Section 2A(8-a) was read down and upheld only to the extent that it means the value of goods at the time of entry into the local area, consistent with Section 3(1).

Issue (ii): Whether the reassessment notices and assessment orders were valid under Section 6(2) of the Karnataka Tax on Entry of Goods Act, 1979.

Analysis: Reassessment under Section 6(2) was held to require statutory grounds and cannot be invoked merely because a later officer takes a different view on the same material. The impugned reassessment action was found to rest on the amended definition clause and on the same underlying facts already examined in the original assessments, without fresh material justifying reopening.

Conclusion: The reassessment notices and assessment orders were held unsustainable under Section 6(2) and were quashed.

Issue (iii): Whether the reassessment was impermissible as a mere change of opinion.

Analysis: The original assessments had already accepted the returns. The later reassessment was founded on the same record and on a different understanding of the statutory expression, which amounted to a change of opinion rather than reassessment on fresh material. Such reopening was held impermissible.

Conclusion: The reassessment was held to be based on a mere change of opinion and was invalid.

Issue (iv): Whether the petitioner should be relegated to the statutory appellate remedy.

Analysis: The writ challenge concerned the vires and construction of the levy provision, and the impugned action was treated as jurisdictionally flawed. In those circumstances, the existence of an appellate remedy was not treated as a bar to writ jurisdiction.

Conclusion: The petitioner was not relegated to the alternative appellate remedy.

Final Conclusion: The statutory expression was harmonised with the charging provision, and the reassessment action founded on that erroneous understanding was set aside, leaving the authorities free to proceed only in accordance with Section 3(1) for the relevant assessment periods.

Ratio Decidendi: In a taxing statute, the charging provision prevails over a conflicting definition clause, and reassessment cannot be sustained on a mere change of opinion without fresh material.

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