1997 (7) TMI 624 - HC - VAT and Sales Tax

Summary

Issues:
1. Whether the transfer of an import licence constitutes a sale of goods under the Kerala General Sales Tax Act, 1963.
2. Whether the assessment orders for the years 1983-84 and 1984-85 were passed within the statutory time limit.

Analysis:
1. The main issue in these tax revision cases was whether the transfer of an import licence, known as REP licence, amounts to a sale of goods under the Kerala General Sales Tax Act, 1963. The Tribunal held that the assessing authority was correct in levying tax on the petitioner for the sale proceeds of the REP licence. Citing the decision in Vikas Sales Corporation v. Commissioner of Commercial Taxes [1996] 102 STC 106, the Tribunal's view on the tax liability for the transfer of REP licence was deemed correct. The only other issue raised was regarding the limitation period for the assessments of the years 1983-84 and 1984-85. The petitioner argued that the delay in completing the assessments was unjustified, relying on a previous court decision. However, the Government Pleader contended that the assessments were completed within the statutory time limit as per the provisions of the Kerala General Sales Tax Act.

2. The Government Pleader argued that the assessment orders for the years 1983-84 and 1984-85 were issued within the prescribed time limit, considering the pending assessment proceedings. Referring to the provisions of sub-section (6) of section 17 of the Kerala General Sales Tax Act, the Government Pleader supported the timely issuance of the assessment orders. The Tribunal noted that the delay in the assessment process was primarily due to the petitioner's repeated requests for extensions and adjournments. The Court found no merit in the petitioner's argument that the delay in passing the assessment orders rendered them unreasonable or irrational. Drawing a distinction from a previous case, the Court emphasized that the assessing authority cannot be faulted for the delay when assessments were completed within the statutory timeframe.

In conclusion, the Court dismissed the tax revision cases, affirming the Tribunal's decision on the tax liability for the transfer of the REP licence and upholding the validity of the assessment orders for the years 1983-84 and 1984-85. The Court found no justification to deem the assessment orders as unsustainable due to any alleged delay, as they were issued within the statutory time limit specified under the Kerala General Sales Tax Act.