Completed assessment cannot be reopened merely because a later court ruling changes the tax position on the transaction.

A completed assessment under the Trade Tax Act cannot be reopened merely because a later Supreme Court decision declares the relevant transaction taxable. The original assessment had granted exemption on the law as it stood when it was finalized, and that finality could not be disturbed solely on the basis of a subsequent change in judicial interpretation. Reopening on that ground was treated as a colourable exercise of power and beyond jurisdiction. The completed assessment was therefore not liable to be reopened.

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Issues: Whether a completed assessment could be reopened under Section 21(2) of the Trade Tax Act on the basis of a subsequent Supreme Court holding the relevant transaction taxable.

Analysis: The original assessment had considered the relevant purchases and granted exemption on the footing that the assessee was not liable to tax on the replacement of spare parts during the warranty period. The later reopening was founded only on a subsequent judgment of the Supreme Court which later declared such a transaction to be taxable. A subsequent judicial pronouncement cannot, by itself, furnish a valid basis to disturb an assessment that had already attained finality on the law as it stood at the relevant time. Reopening on that ground amounted to a colourable exercise of power and was without jurisdiction.

Conclusion: Reopening of the completed assessment was not justified and was illegal.

Ratio Decidendi: A completed assessment cannot be reopened merely because a later judgment declares the law differently; such reopening is impermissible where the original assessment was finalized on the law then prevailing.

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