1. The petitioner, which is a proprietorship firm engaged in sale and purchase of soya refined and other edible oils, was assessed under Section 28(1) of the Chhattisgarh Commercial Tax Act, 1994 (for short, 'the Act of 1994') on 18-1-2008 for the assessment year 2004-05 and thereafter, the petitioner firm was reassessed on 12-12-2009 and tax was assessed to be of Rs. 17,12,075/- and an equal amount of penalty was imposed, thus, a total demand of Rs. 34,24,150/- was raised which was questioned by the petitioner before the revisional authority. The petitioner remained unsuccessful in revision leading to filing of this writ petition questioning the order of reassessment affirmed by the revisional authority.

2. Learned counsel for the petitioner would submit that the Act of 1994 was repealed with effect from 1-4-2006 and the Chhattisgarh Value Added Tax Act, 2005 (for short, 'the Act of 2005') came into force with effect from 1-4-2006 and by virtue of Section 72(iii) of the Act of 2005, the reassessment proceedings have not been saved and therefore reassessment for the year 2004-05 could not be done under Section 28 of the Act of 1994 after repeal of the Act of 1994 as such, the entire proceedings of reassessment initiated and the order of reassessment passed are liable to be quashed.

3. On the other hand, learned State counsel would support the impugned order and would submit that the penalty proceedings are saved by the 3rd proviso to Section 72 of the Act of 2005 and the order impugned is strictly in accordance with law.

4. I have heard learned counsel appearing for the parties and considered their rival submissions made herein-above and also gone through the record with utmost circumspection.

5. It is not in dispute that the Chhattisgarh Commercial Tax Act, 1994 was repealed by Section 72 of the Chhattisgarh Value Added Tax Act, 2005 with effect from 1.4.2006. Section 72 (iii) of the VAT Tax Act, 2005 provides for repeal and savings, which states as under :-

“Section 72 (iii) : Any assessment, appeal, revision or other proceedings arising under the repealed Act and the rules made thereunder and/or pending before an officer or authority duly empowered to make assessment or hear and decide such appeal, revision or other proceeding immediately preceding the commencement of this Act shall, on the date of such commencement stand transferred to the officer or authority competent to make assessment or to hear and decide appeal or revision or other proceedings under this Act and thereupon such assessment shall be made or such appeal or revision or other proceedings shall be heard and decided within the period, if any, specified therefor, by such officer or authority in accordance with the provisions of the repealed Act or the rules made thereunder as if they were the officer or authority duly empowered for the purpose under the repealed Act.”

6. A careful perusal of the aforesaid provision would show that any assessment, appeal, revision or other proceedings under the repealed Act are saved by repealing Act but the reassessment proceeding is not saved. Non-saving of reassessment proceeding is apparent from the provisions contained in Section 72 of the Act of 2005, which is quoted herein-above.

7. Section 22(1) of the VAT Act, 2005 provides as under:-

“22. Assessment/reassessment of tax in certain circumstances.- (1) Where an assessment or reassessment of a dealer has been made under this Act or the Act repealed by this Act and for any reason any sale or purchase of goods liable to tax under this Act or the Act repealed by this Act during any period,-

(a) has been under assessed or has escaped assessment; or

(b) has been assessed at a lower rate; or

(c) any wrong deduction has been made while making the assessment; or

(d) a rebate on input tax has incorrectly been allowed while making the assessment; or

(e) is rendered erroneous and prejudicial to the interest of revenue consequent to or in the light of any judgment or order of any Court or