Mentha And Allied Products Ltd Vs State Of U.P. And 3 Others (Allahabad High Court)
The case of Mentha And Allied Products Ltd Vs State Of U.P. And 3 Others, heard in the Allahabad High Court, revolves around a reassessment order and related proceedings under the Uttar Pradesh Value Added Tax Act, 2008 (referred to as the ‘Act’). The petitioner, a manufacturer of ‘Mentha Oil’, contested a reassessment order dated 28.03.2023, issued for the Assessment Year (A.Y.) 2014-15 (U.P.). The petitioner challenged the reassessment order, an order by the Additional Commissioner, and a reassessment notice.
The petitioner initially claimed Input Tax Credit (ITC) during the regular assessment proceedings, which were concluded with certain disallowances. However, nearly eight years later, the petitioner received a notice proposing reassessment based on the alleged under-assessment due to the sale of ‘Mentha Oil’ in export transactions. The petitioner contested this reassessment on several grounds.
Firstly, it argued that any incorrect ITC claims should have been addressed during the regular assessment period or through the Reverse Input Tax Credit (RITC) process, which was not initiated. Secondly, it questioned the jurisdiction of reassessment proceedings, arguing that they should only be initiated for turnover-related issues, not ITC claims. Additionally, the petitioner contended that the ‘Mentha Oil’ exported was not generally exempt from tax, and therefore, ITC claims should not be disallowed.
