2009 (2) TMI 765 - HC - VAT and Sales Tax

Summary

Issues involved:
The issue involved in this case is whether the sales tax assessment for the year 1998-99 completed on March 22, 2004, is barred by limitation or not.

Judgment Details:

The Tribunal declared the assessment as time-barred based on section 17(6) of the Kerala General Sales Tax Act, 1963, which sets the time limit for completion of assessment as four years from the end of the relevant year.

The Government Pleader argued that the assessment was not barred by limitation as the Deputy Commissioner had issued proceedings extending the assessment period beyond March 31, 2003.

The respondent's counsel contended that the Deputy Commissioner's proceedings were not presented before the first appellate authority or the Tribunal, and thus, they had no opportunity to consider it. Additionally, it was argued that there was no valid reason for the Deputy Commissioner to issue the order.

The first appellate authority upheld the assessment by referring to an amendment to section 17(6) introduced by the Finance Act, 2002, extending the assessment limitation to five years from March 31, 2002, to March 31, 2003.

The court determined that the amendment applied to save the assessment for the year 1998-99, as it was completed within the extended time frame provided by the amendment.

Therefore, the court allowed the revision, vacated the Tribunal's order, and reinstated the first appellate authority's decision.

The court did not delve into the validity of the proceedings issued by the Deputy Commissioner under section 17(7) of the KGST Act, given the above finding.