Decided on May 15,2013

Amway India Enterprises (P) Limited Appellant


KALYAN JYOTI SENGUPTA, J. - (1.) THE petitioner, above named, has filed this writ petition to challenge the reassessment under the Uttarakhand of the Value Added Tax (hereinafter referred to as 'VAT) for the assessment years 2005 -2006, 2006 -2007 and 2007 -2008. The challenge includes both the notices issued under Section 29 of the Uttarakhand Value Added Tax Act, 2005 (hereinafter referred to as 'VAT Act) and the orders passed thereunder.
(2.) THE petitioner is a Private Limited Company incorporated under the Companies Act, 1956. The petitioner has been carrying on business of direct selling of various items of goods and these goods are sold at the same price at different States. The petitioner maintains books of accounts properly and duly reflecting the true and correct position of the business activity. It was registered under Uttar Pradesh Trade Tax Act and under the VAT Act after the same having come into force and also under the Central Sales Tax Act. The regular assessments in respect of assessment year 2005 -2006 under Section 25 of VAT Act has been completed by respondent No. 3 herein the Deputy Commissioner (Assessment) Commercial Taxes, Dehradun after detailed scrutiny of the account books, documents, sale invoice, daily sale register, vouchers, stock book etc. and assessment order was passed. While doing so the said official had duly seen, verified and signed the documents and register. Similarly, the assessments for the assessment years 2006 -2007 and 2007 -2008 have also been completed by the Assessing Authority, after verifying and accepting the book of accounts. All the invoices along with records, such as ledger, cash book, bank book, daily sales book, daily sales return book, daily tax book, daily tax return book, stock book and purchase invoices etc. were verified, signed and accepted. Thus, the assessments for the three assessment years i.e. 2005 -2006, 2006 -2007 and 2007 -2008 have been completed by Assessing Authority and the book figures were accepted in all the assessments. The Assessing Authority never raised any objection to the pattern of invoices including sales one or books and accepted the same. On the basis of invoices, after the books of accounts, the Assessing Authority accepted the sale figures both declared by in the periodical returns and books of accounts and tax liability admitted and declared on the basis of sale is also accepted in assessment orders.
(3.) THE assessment for the assessment year 2005 -2006 was completed by passing order dated 31st July, 2009. Similarly, assessment orders for the assessment years 2006 -2007 and 2007 -2008 were completed by the Assessing Authority by passing orders dated 26th February, 2010 and 8th December, 2010 respectively. In course of assessment proceedings, the account books, namely, cash book, ledger, daily sale book, daily sales return book, daily tax book, daily tax return book, stock book, purchase and sale invoices were produced and the Assessing Authority had also verified and examined in detail, the same and even signed before accepting the said books of accounts and before making an assessment. After expiry of the period of six years for the assessment year 2005 -2006 reassessment under Section 29 (1) of the VAT Act was sought to be initiated issuing a notice. Similar notices were also issued for the assessment years 2006 -2007 and 2007 -2008. All the notices were issued, for all the said assessment years, on 14th August, 2012. Before issuance of the said notices, a survey was made on 15th March, 2011 at the premises of the petitioner by the Deputy Commissioner, Commercial Taxes (SIB), Dehradun. On the basis of the survey, the Deputy Commissioner passed an order on 16th June, 2011 creating certain liabilities against the petitioner for the assessment years 2005 -2006 to 2010 -2011 directing the petitioner to deposit certain amount mentioned in the said order dated 16th June, 2011. The said action of the Deputy Commissioner, Commercial Taxes (SIB), Dehradun was challenged by the petitioner before this Court by filing Writ Petition No. 2233 (M/S) of 2011 on 17th October, 2011. On 18th October, 2011, the said petition was admitted for hearing and interim order was passed. The said writ petition was finally allowed on 7th June, 2012 by this Honble Court and thereby said order of the Deputy Commissioner was set aside.;

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