Prakash Krishna, J. - (1.) BY means of this writ petition, the petitioner has challenged the authorization order dated February 22, 2008/February 25, 2008 passed by the Additional Commissioner, Grade -I, Commercial Tax, Allahabad Zone, Allahabad, granting permission under section 21(2) of the U.P. Trade Tax Act, 1948 for reassessment for the assessment year 2001 -02 (Central). The petitioner, a partnership firm is carrying on the business of procuring rice from paddy purchased within the State of U.P. at its rice mill situate at Sirsa, Meja, Allahabad. It is also a recognition certificate holder issued under section 4B of the U.P. Trade Tax Act for the relevant assessment year, i.e., 2001 -02. The petitioner purchased paddy within State of U.P. and paid purchase tax at two per cent. The paddy was converted into rice.
(2.) The rice thus manufactured out of tax -paid paddy was sold within and outside the State of U.P. The disclosed inter -State sales of rice amounts to Rs. 60,51,075. During the course of the assessment proceeding, the petitioner admitted its liability of tax on aforesaid inter -State sales at four per cent but also claimed adjustment of tax paid in the State of U.P. on the purchases of paddy, under section 15(c) of the Central Sales Tax Act. The said claim was allowed by the assessing officer by its order dated January 2, 2005. The assessing officer gave an adjustment of Rs. 1,22,245 in respect of tax already paid on purchases of paddy.
(3.) SUBSEQUENTLY , a notice under proviso to section 21(2) of the U.P. Trade Tax Act was issued to the petitioner on the ground that he was not entitled to adjustment in tax on inter -State sales of rice by an amount already paid on purchases of paddy under the provisions of section 15(c) of the Central Sales Tax Act. The assessing officer sought permission which was granted from the Additional Commissioner (1), Commercial Tax, Allahabad Zone, Allahabad as required under section 21(2) of the Act to reopen the case and initiate reassessment proceeding as the tax has escaped assessment. The present petition has been filed challenging the said order dated February 22, 2008, granting the permission and the show -cause notice issued under section 21(2) of the Act by the assessing officer.;