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2014 (8) TMI 225 - HC - VAT and Sales TaxApplicability of limitation period - Whether in view of section 106(4) the entire provision of revision as contemplated u/s 46 of the 1975 Act including the period of limitation prescribed therein would be applicable to such revisions - Held that - On a plain reading of sub-section (4) of Section 106 of the DVAT Act, 2004, insofar as it applies to a case of revision, it would be evident that notwithstanding the repeal of the 1975 Act, for the purposes of a revision which relates to any period ending before the 1st day of April, 2005 or for any other purpose connected with or incidental to such revision, the repealed Act, (i.e., the 1975 Act) would continue to have effect as if the DVAT Act, 2004 had not been passed. It is absolutely clear that the entire provision of revision as contemplated under Section 46 of the 1975 Act including the period of limitation prescribed therein would be applicable to such revisions notwithstanding the repeal of the said Act by the DVAT Act, 2004. This was not noticed by the Court in previous judgment passed - Order Recalled - Decided in favour of assessee.
Issues:
1. Interpretation of the provisions of Section 106 of the DVAT Act, 2004 in relation to the period of limitation for revisions initiated after 01.04.2005. 2. Application of the newly added sub-section (4) of Section 106 of the DVAT Act, 2004 to revisions and related matters. 3. Recall of the judgment dated 22.05.2012 due to oversight in considering the implications of the added sub-section (4) of Section 106. 4. Referral of the matter to the roster Bench for a decision on other grounds challenged apart from the limitation issue. Analysis: The High Court analyzed the implications of the provisions of Section 106 of the DVAT Act, 2004 in the context of a revision initiated after 01.04.2005. The Court initially held that the period of limitation for such revisions would be four years as prescribed in Section 74A(2)(b) of the DVAT Act, 2004, rejecting the argument for a five-year limitation under Section 46 of the Delhi Sales Tax Act, 1975. However, it was brought to the Court's attention that sub-section (4) of Section 106, added by an amendment, applies retrospectively from 01.04.2005. This sub-section allows the repealed Act, i.e., the 1975 Act, to continue to have effect for revisions related to periods ending before 01.04.2005, including the period of limitation prescribed therein. The Court acknowledged its oversight in not considering the implications of the newly added sub-section (4) of Section 106 in the earlier judgment dated 22.05.2012. Consequently, the Court recalled the said decision and decided to refer the matter to the roster Bench for a decision on other grounds challenged apart from the limitation issue. The Court emphasized that sub-section (4) of Section 106 clearly indicates that the provisions of the repealed Act, the 1975 Act, including the period of limitation for revisions, would apply to cases falling within its ambit, despite the enactment of the DVAT Act, 2004. Furthermore, the Court noted the petitioner's reliance on a Gujarat High Court decision and arguments regarding the application of limitation provisions in the absence of specific saving provisions. However, the Court disagreed with these submissions, emphasizing the explicit terms of sub-section (4) of Section 106. The Court also dismissed the petitioner's reference to a Supreme Court judgment, stating that it would not support the petitioner's case. As a result, the Court decided to recall the judgment dated 22.05.2012 and directed the matter to be placed before the roster Bench for further consideration of the remaining grounds raised by the petitioner. The stay granted until the previous decision would continue until the disposal of the writ petition.
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