M/S J.R.Agro Industries PVT.LTD.Thru Managing Director vs. State Of U.P.Thru Prin.Secy. Tax Andregistration Lko And Ors.

Heard Sri Pradeep Agrawal, learned counsel for the petitioners and Sri Sanjay Sareen, learned Additional Chief Standing Counsel, for the State Respondents.

These petitions involve the same question of law with regard to the juri iction of the Authorities to re-open the Assessment of Value Added Tax, which was already completed earlier in the Assessment Year 2011-2012 to Assessment Year 2016-2017. 3. After the original Assessment was completed under Section 28(2) of the U.P. Value Added Tax, 2008, and the benefit of Input Tax Credit ( for short "ITC") was allowed to the assessee in one case, this Court sitting at Allahabad in Commercial Tax Revision No.148 of 2018: Ltd., Bisalpur Road, Bareilly, had held that M/s Modi Naturals is not entitled for full benefit of ITC claim on the goods purchased by it for manufacturing of its final product. On the basis of said decision of this Court dated 03.05.2019, the Assessments of the petitioner, which were already completed, were sought to be re-opened under Section 29(7) for escapement of turnover for the Assessment Year 2011-12 to Assessment Year 2016-2017 by the Additional Commissioner, No.5822-5823 of 2023 has set aside this Court's judgment dated 03.05.2019. A copy of the judgement rendered by Hon'ble Supreme Court in 6. During the pendency of the Civil Appeal of M/s Modi Naturals Ltd., as aforesaid, in several writ petitions which were filed before this Court, this Court had granted interim protection and proceedings that were initiated on the basis of judgement in M/s Modi Naturals Ltd. (supra), under Section 29(7) of the Act was stayed by this Court in all such writ petitions except for three writ petitions, namely, Writ-C No.6100 of 2021, Writ-C No.7549 of 2021 and Writ-C No.7619 of 2021, where final Assessment has already been made.

It has been argued by Sri Pradeep Agarwal, learned counsel for the petitioner, that now since Hon'ble Supreme Court has set aside the judgement rendered by this Court in Modi Naturals (supra), it would be appropriate that all proceedings that were initiated by the Assessing Authority for re-opening of the Assessment Year 2011-2012 to Assessment Year 2016-2017 against the petitioner may be set aside by this Court and the impugned notices are liable to be quashed.

This Court having gone through the judgement dated 06.11.2023 rendered by Hon'ble Supreme Court, a copy of which has been provided to us, is of the opinion that it is not contended by the State Respondents that the juri iction to re-open was which has already been set aside by Hon'ble Apex Court, therefore, this Court finds it appropriate to quash the impugned notices issued under Section 29(7) of the U.P. Value Added Tax, 2008 for the Assessment Years 2011-2012 to Assessment Years

Consequently, the approval that was granted by the Additional Commissioner for re-opening the Assessment under Section 29(7) of the Act also stands quashed.

The writ petitions stand allowed. Order Date :- 8.1.2024 Rahul RAHUL TRIPATHI High Court of Judicature at Allahabad, Lucknow Bench