2013 (4) TMI 683 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to showcause notice for assessment under Punjab Value Added Tax Act, 2005 for the year 2007-08.

Details of the judgment:

The petitioner contested the showcause notice dated September 5, 2012, arguing that the assessment had already been completed, making the notice baseless. It was revealed in the reply that a notice dated April 29, 2011, was issued to finalize the assessment of VAT returns for the years 2005-06, 2006-07, and 2007-08. While assessments for the first two years were completed, the assessment for 2007-08 was pending due to the transfer of the Assessing Officer.

The learned Additional Advocate-General, Punjab, highlighted that u/s 29(4) of the Act allows assessments to be framed within six years from the date the annual return was filed or due, with written permission from the Commissioner. As of the current date, there was no written permission from the Commissioner to frame the assessment within the specified timeframe. Therefore, without such permission, the VAT return for 2007-08 filed by the petitioner could not be subjected to further assessment.

After hearing arguments from both sides, the court observed the absence of written permission from the Commissioner to frame the assessment within the extended period. Consequently, the court allowed the writ petition, quashing the notices dated April 29, 2011, and September 5, 2012, in relation to the assessment year 2007-08, unless there was an order from the Commissioner permitting the assessment within the extended limitation period as per section 29(4) of the Act.