2009 (11) TMI 841

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....sure the consumption of electricity, the petitioner is using the metres and realizing the rent from the consumers. For the assessment years 1998-99 to 2001-02, the Department accepted the claim of the petitioner that trade tax is not leviable on the metre rents charged by the petitioner from the customers, under section 3F of the said Act, in view of the fact that there is no transfer of right to use the metres. The said meters could only be used for measuring the consumption of electricity. Assessment orders were framed in the light of the circular dated February 6, 1996 issued in this regard by the Commissioner. Thereafter notices under section 21 of the U.P. Trade Tax Act for the aforesaid assessment years to reassess the turnover were i....

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.... that the assessments are sought to be reopened on the basis of subsequent circular dated January 13, 2005 issued by the Commissioner. Submission is that it is not permissible under the law to reopen a concluded assessment, in view of the subsequent circular. Secondly, in the said subsequent circular itself it has been provided by the Commissioner that the circular shall have prospective operation. In other words, it will have no application to the concluded assessment. The learned standing counsel, on the other hand, supports the action of the Department. Considered the respective submissions of the learned counsel for the parties and perused the entire record of the case. Before proceeding further, we may notice one fact that against t....

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....e any effect on any assessment which has been completed on the basis of circular dated February 6, 1996. In other words, reopening of an assessment is not permissible if the Commissioner reviews its earlier circular. The argument of the learned counsel is, thus, well-founded. The learned counsel for the petitioner submits that the subsequent circular dated January 13, 2005 will have no application to the concluded assessment as it is prospective in nature and placed reliance on paragraph 6 of the circular dated January 13, 2005. The submission is that the said circular is prospective in nature and it will not apply to the concluded assessment. It is difficult to agree with him. On a plain reading of the said circular, it is but obvious tha....