TaxTMI 
TaxTMI 
2010 (4) TMI 997
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Act") to reopen the proceedings for the assessment years 1997-98 and 1998-99 both under the U.P. Trade Tax Act as well as under the Central Sales Tax Act, 1956 beyond the normal period of limitation. Brief facts giving rise to the present writ petition are that the petitioner is a registered dealer under the U.P. Trade Tax Act as well as under the Central Sales Tax Act and was involved in the business of manufacture and sale of acetone gas, oxygen gas, medical oxygen gas, nitrogen gas, etc. For the assessment years 1997-98 and 1998-99 the assessing authority had passed the assessment orders on February 29, 2000 and February 19, 2001, respectively, both under the U.P. Trade Tax Act as well as under the Central Sales Tax Act. It appears....
X X X X Extracts X X X X
X X X X Extracts X X X X
....si Zone I, Varanasi, has issued the notice on January 12, 2009 on the same grounds on which approval had earlier been granted. The petitioner filed reply on November 19, 2009. One of the submission was that the supply to the oxygen gas and acetone gas was for factory and, therefore, onward freight charged would not be part of the turnover. It was also submitted that the tax has been assessed on the freight charges for the assessment years 2001-02, 2002-03, 2003-04 and 2004-05 but in appeal the levy of tax on such freight has been deleted and against the orders of the first appellate authority, the appeals have been dismissed by the Tribunal. The Additional Commissioner, Grade I, Commercial Tax, Varanasi Zone I, Varanasi while exercising ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e exercise of suo motu powers and asking the report from the assessing authority on new grounds was beyond the period of limitation, as eight years have expired in the year 2006 whereas fresh report has been sought in the year 2010 and, therefore, the exercise of suo motu powers and asking for the report beyond the period of limitation was barred. He further submitted that again the Additional Commissioner, Grade I, Commercial Tax, Varanasi Zone I, Varanasi, has passed the orders mechanically without considering the reply of the petitioner and without giving any reason. Therefore, the orders of the Additional Commissioner, Grade I, Commercial Tax, Varanasi Zone I, Varanasi, are liable to be set aside. While entertaining the writ petition....
X X X X Extracts X X X X
X X X X Extracts X X X X
....that the orders were passed mechanically without giving any reason, the impugned orders have again been passed mechanically. From the perusal of the impugned orders, it is not clear that whether the approval has been granted on the basis of the grounds taken in the earlier proposal or on the basis of the report given by the assessing authority on new grounds. However, in view of the statement given by the Additional Commissioner, Grade I, Commercial Tax, Varanasi Zone I, Varanasi, in this court, we proceed to examine that the proposal has been granted on the basis of the grounds mentioned in the earlier proposal and not on the basis of the new grounds. The impugned orders reveal that the reply of the petitioner has not been considered. In v....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ation prescribed under section 21(2) of the Act. Therefore, we are of the view that a detailed reasoning is not required to be given while granting the authorization. What is required under the proviso is that there should be an application of mind to arrive at the satisfaction on the consideration of the reasons recorded and the submissions of the assessee. In the present case, we find that the Additional Commissioner, Grade I, Commercial Tax, Varanasi Zone I, Varanasi has not acted in accordance with law and despite the order passed by this court the power has not been exercised carefully and judiciously and the order of this court has not been complied with. For the reasons stated above, the writ petition is allowed. The impugned o....