Reassessment cannot be used solely to reverse input tax credit under the Uttar Pradesh VAT regime.

Reassessment under Section 29(7) of the Uttar Pradesh Value Added Tax Act, 2008 cannot be used solely to reverse input tax credit. A prior Division Bench had already held that such proceedings were not maintainable for that purpose, and the Supreme Court had dismissed the revenue's special leave petition against that view. Applying that binding position, the impugned reassessment order was treated as unsustainable, and the issue was resolved in favour of the assessee.

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Issues: Whether reassessment proceedings under Section 29(7) of the Uttar Pradesh Value Added Tax Act, 2008 could be initiated for reversal of input tax credit.

Analysis: The revision arose from reassessment proceedings initiated under Section 29(7) to reverse input tax credit. A prior Division Bench decision had held that such reassessment could not be undertaken for reversal of input tax credit, and the Supreme Court had dismissed the revenue's special leave petition against that decision. In view of that binding position, the impugned order could not be sustained.

Conclusion: The reassessment proceedings for reversal of input tax credit were not legally maintainable and the issue was decided in favour of the assessee.

Ratio Decidendi: Reassessment under Section 29(7) cannot be used to initiate proceedings solely for reversal of input tax credit.

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