AI Drafter 
TaxTMI 
TaxTMI 
2017 (9) TMI 60
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....llenge in the present writ petition is on two folds. Primarily the petitioner has challenged the entire initiation of assessment to be barred by limitation and the second challenge was that the Light Diesel Oil (in short LDO) and Furnace Oil (in short, FO) are two distinct commodities and therefore the rate of tax applicable on both these products should be separately levied at separate rates. 3. The assessment year involved in the present dispute is 2001-02. At the relevant point of time i.e. in the year 2001-02 it was the Commercial Tax Act which was in force. The petitioner company is a Central Govt. undertaking and is engaged in sale and purchase of petroleum products across the country including the State of Chhattisgarh. The produc....
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....ng of present writ petition. 6. Counsel for the petitioner submitted that in the year, 2001-02, the law in force for tax was the Commercial Tax Act, however, in the year, 2006, the Chhattisgarh Value Added Tax Act, 2005 (for short, VAT Act) came into force and was made effective from 01.04.2006. It was further submitted that by virtue of coming into force of VAT Act, the earlier tax law i.e. Commercial Tax Act stood repealed. After coming into force of VAT Act, for all practical purposes, the law as it lays down under the VAT Act would be applicable even in respect of the assessment years for the period prior to coming into force of VAT Act 7. According to counsel for the petitioner, under Section 22 of the VAT Act, the order of re-as....
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....for any reason any sale or purchase of goods chargeable to tax under this Act or the Act repealed by this Act during any period, has been under assessed or has escaped assessment or assessed at a lower rate or any deduction has been wrongly made therefrom or a set off has been wrongly allowed, the Commissioner may, at any time within five calendar years from the date of order of assessment after giving the dealer a reasonable opportunity of being heard and after making such enquiry as he considers necessary, proceed in such manner as may be prescribed to reassess within a period of two calendar years from the commencement of such proceedings the tax payable by such dealer and the Commissioner may, where the omission leading to such reassess....
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....able to tax under this Act or the Act repealed by this Act during any period- (a) has been under assessed or has been escaped assessment; or (b) has been assessed at a lower rate; or (c) any wrong deduction has been made while making the assessment; or (d) a rebate or input tax has incorrectly been allowed while making the assessment; or (e) is rendered erroneous and prejudicial to the interest of revenue consequent to or in the light of any judgment or order of any court or Tribunal, which has become final, the Commissioner may at any time within a period of three calendar years from the date of order of assessment, (or from the date of judgment or order of any court or Tribunal) proceed in such manner as may be prescr....
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....cement of this Act, have also been saved to the extent that the same shall be heard and decided by the authority competent to entertain any appeal, revision or any other proceedings in accordance with the provisions of this Act. However, the re-assessment of the earlier assessment has not been saved under the repealing provisions under Section 72 of the Act. Thus, any re-assessment proceeding initiated after the new Act came into force cannot be saved. Thus, the assessment initiated under the old provisions but VAT Tax came into force stand quashed." 14. The State counsel opposes the petition on the ground that the issue of limitation has not been raised by the petitioner before the revisional authority or before the Assessing Officer du....