- (1.) THE petitioner has sought to question the legality of an order dated 21 March 2014 of the Additional Commissioner, Commercial Tax, Grade -I, Kanpur Zone -II, Kanpur by which reassessment proceedings have been initiated against the petitioner for Assessment Year 2007 -08. The petitioner also seeks to question the consequential reassessment notice.
(2.) THE petitioner is engaged in the manufacture and sale of plastic containers and was duly registered under the U.P. Trade Tax Act, 1948, which has since been repealed w.e.f. 1 January 2008. After the enforcement of the U.P. Value Added Tax Act, 2008, the petitioner has obtained registration as a manufacturer and seller of plastic containers. During the course of the Assessment Year 2007 -08 and upto 31 December 2007, containers made of plastic were taxable @ 8% at the point of sale by a manufacturer or importer by virtue of a notification dated 5 February 2003. Under the notification, Entry 64 read as follows: Sl. No. Description of goods Point of tax Rate of tax percentage 1 2 3 4 64 Plastic buckets, plastic basin, plastic soap case, plastic plate and other wares and containers made of plastic, P.P. Mat, plastic mat, plastic cane goods and mat M or I 8.00% For the Assessment Years 2004 -05, 2005 -06 and 2006 -07, the petitioner was assessed to tax under Section 7 of the Repealed Act read with Rule 41 (8) by assessment orders dated 13 March 2007, 1 October 2008 and 5 March 2009. In the assessment orders, the Assessing Officer took due note of the fact that the business activities of the petitioner consisted of the manufacture or sale of plastic disposable containers. The petitioner was given the benefit of the notification dated 5 February 2003 noted above and was taxed on the sale of plastic disposable containers by applying the rate of tax at 8%. Similarly for the Assessment Year 2007 -08 (1.4.2007 to 31.12.2007) the petitioner was given the benefit of the aforesaid notification by the assessment order dated 5 October 2009.
(3.) THE Additional Commissioner issued a notice to the petitioner on 2 July 2013 to show -cause as to why permission should not be granted for reassessing the petitioner for Assessment Year 2007 -08 (1.4.2007 to 31.12.2007) in the extended period of limitation. The notice was issued on the premise that the goods manufactured by the petitioner were not covered by the taxing entry and that the petitioner was liable to suffer tax under the said entry @ 10%. The petitioner submitted a reply to the notice objecting to the proposed reassessment. By an order dated 21 March 2014, the Additional Commissioner has granted permission to the Assessing Authority to reassess the petitioner for the Assessment Year 2007 -08 in the extended period of limitation on the premise that the petitioner has manufactured disposable plastic containers and that the taxing entry is not in respect of disposable plastic containers but only in respect of those which are of non -disposable nature. The Assessing Authority has issued a notice on 20 March 2014 initiating assessment proceedings.;