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2019 (5) TMI 1178 - HC - VAT and Sales Tax


Issues Involved:
1. Limitation period for assessment under the HGST Act and HVAT Act.
2. Applicability of Section 61(2)(a) of the HVAT Act.
3. Tribunal's adoption of contradictory stands.
4. Tribunal's consideration of laws of limitation for assessment and revision.
5. Applicability of old law to cases under the repealed HGST Act.
6. Entitlement to relief on the ground of limitation.
7. Tribunal's failure to adjudicate on merits.
8. Delay in completion of assessments due to the respondent's tactics.

Detailed Analysis:

1. Limitation Period for Assessment:
The primary issue was whether the assessment orders for the years 1999-2000 to 2002-03, passed on 26.3.2009, were barred by limitation. The Tribunal held that the limitation period prescribed under the HVAT Act, being procedural law, applied retrospectively to pending assessments. Therefore, the assessments should have been completed by 31.3.2006, making the orders passed in 2009 time-barred.

2. Applicability of Section 61(2)(a) of the HVAT Act:
Section 61(2)(a) of the HVAT Act specifies that all pending applications, appeals, revisions, or other proceedings under the HGST Act at the commencement of the HVAT Act shall be transferred to the corresponding authority under the HVAT Act. The Tribunal applied this provision, determining that the procedural law of limitation under the HVAT Act governed the pending assessments, thus making the assessment orders time-barred.

3. Tribunal's Adoption of Contradictory Stands:
The appellant-revenue argued that the Tribunal adopted a contradictory stand compared to its earlier position in other cases. The Tribunal, however, consistently applied the procedural law of limitation under the HVAT Act to pending assessments from the HGST Act, maintaining that the new limitation period of three years applied retrospectively.

4. Tribunal's Consideration of Laws of Limitation:
The Tribunal was criticized for adopting different lines of application of laws of limitation for assessment under Section 28 and revision under Section 40 of the HGST Act. The Tribunal clarified that procedural laws, including those related to limitation, are generally retrospective unless otherwise specified, and thus applied the HVAT Act's limitation period to pending assessments.

5. Applicability of Old Law to Cases Under the Repealed HGST Act:
The appellant-revenue contended that the old HGST Act should govern the cases under the repealed law. The Tribunal, however, held that the procedural law of limitation under the HVAT Act, being retrospective, applied to pending assessments, thereby overriding the old HGST Act provisions.

6. Entitlement to Relief on the Ground of Limitation:
The Tribunal justified the respondent's entitlement to relief on the ground of limitation, emphasizing that the assessments were time-barred under the HVAT Act's procedural law. The Tribunal found no merit in the appellant-revenue's argument that the respondent willfully avoided tax payment.

7. Tribunal's Failure to Adjudicate on Merits:
The appellant-revenue argued that the Tribunal failed to adjudicate on the merits of the case. The Tribunal, however, focused on the procedural aspect of limitation, determining that the assessments were time-barred, and thus did not delve into the substantive merits.

8. Delay in Completion of Assessments:
The appellant-revenue claimed that the delay in completing assessments was due to the respondent's tactics. The Tribunal found no evidence that the writ petition or any actions by the respondent impeded the assessment process, noting that the interim order only stayed the recovery of tax, not the assessment proceedings.

Conclusion:
The Tribunal's decision to set aside the assessment orders as time-barred was upheld. The appeals were dismissed on both merits and the ground of delay, with the Tribunal's application of the procedural law of limitation under the HVAT Act being deemed appropriate and consistent with established legal principles.

 

 

 

 

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