2009 (1) TMI 846 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to order u/s 67 of KVAT Act on grounds of limitation.

The petitioner challenged Ext.P2 order on the basis that it was barred by limitation u/s 67 of the KVAT Act. The proviso of Section 67 mandates disposal of the case within one year from the date of detection of the offense, unless an extension of time is granted by the Deputy Commissioner. The Counter Affidavit acknowledged that the order was passed beyond the stipulated time frame, with no extension granted by the Deputy Commissioner. The Court noted that the imposition of penalty through Ext.P2 was illegal and beyond the permissible time limit. Consequently, the Writ Petition was allowed, Ext.P2 was quashed, and it was clarified that this decision did not preclude any further lawful actions against the petitioner.