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1978 (4) TMI 209 - HC - VAT and Sales Tax
Issues: Whether the revised assessment made under section 19 of the Kerala General Sales Tax Act, 1963 was time-barred.
Summary: The petitioner, an assessee under the Kerala General Sales Tax Act, challenged the revised assessment dated 23rd November, 1973, contending it was time-barred. The original assessment was made on 30th April, 1970, and subsequent notices were issued under section 19. The Appellate Assistant Commissioner set aside the order and directed a fresh assessment. The revised order made on 23rd November, 1973, was challenged by the assessee on the grounds of lack of proper opportunity. The Appellate Assistant Commissioner remanded the case for fresh disposal. The Kerala Sales Tax Appellate Tribunal held that the revised assessment was not time-barred based on the decision in Sales Tax Officer v. Sudarsanam Iyengar & Sons. The assessment under section 17 was made on 30th April, 1970, and an assessment under section 19 for escaped turnover must be made within 4 years from the relevant year. The proceedings under section 19 commenced with notices issued in February and March 1973. The Tribunal held that as long as the proceedings commenced within the stipulated time, the final order could be made after the limitation period. Citing the Supreme Court's decision in Sales Tax Officer v. Sudarsanam Iyengar & Sons, the Court emphasized that the term "assessment" includes the entirety of proceedings, not just the final order. Section 19 of the Act mandates the assessing authority to determine the escaped turnover and assess the tax after issuing a notice to the dealer. The Court clarified that the proceedings must start within the specified period, and the term "assess" encompasses the entire assessment process. Even though the final order was passed after the limitation period, the validity of the assessment is not affected if the proceedings commenced on time. Consequently, the Court dismissed the tax revision case with costs amounting to Counsel's fee Rs 150.
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