1978 (6) TMI 157 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to orders of rectification made under section 25-A of the Karnataka Sales Tax Act, 1957 based on time limitation.

Analysis:
The appeals were against the common order of a learned single judge in Writ Petitions challenging orders of rectification under section 25-A of the Act. The assessees contended that the rectification orders were made beyond the five-year time limit from the respective dates of the orders sought to be rectified. The single judge held that the time limit under section 25-A is only for initiating rectification proceedings, not for completing them. The appellant-assessees argued that the rectification orders were beyond the time limit, relying on a previous court decision. However, the single judge distinguished the previous decision based on the language of the relevant sections.

The appellant further argued that the time limit for rectification should be similar to provisions in income tax laws. The court noted that the impugned orders were made before the Amendment Act came into force, which provided a different time limit for rectification. The court explained that under the Amendment Act, rectification proceedings could be initiated within five years from the date of the order sought to be rectified or within one year from the Amendment Act's commencement, whichever is later. The court clarified that this time limit was only for commencing rectification proceedings, not for completing them, and that the Amendment Act's provisions overrode section 25-A of the Act.

Since the show cause notices in these cases were issued before the Amendment Act's commencement, there was no time limit for completing the rectification proceedings. Consequently, the appeals were dismissed, and each party was directed to bear their own costs.