2018 (9) TMI 1897 - HC - VAT and Sales Tax

Validity of revised assessment order - time limitation - section 27 of TNVAT Act - HELD THAT - The revision proceedings have been belatedly initiated only on 24. 11. 2017 ie. , beyond the period of five years and therefore, all the impugned orders are liable to be set aside as barred by limitation. Impugned order set aside - petition allowed - decided in favor of petitioner.

Summary

Issues:
Challenging revised assessment orders dated 28.03.2018 for assessment years 2007-2008 to 2010-2011 based on limitation period under TNVAT Act.

Analysis:
The petitioner challenged the revised assessment orders dated 28.03.2018 for the assessment years 2007-2008, 2008-2009, 2009-2010, and 2010-2011, citing the limitation period under the TNVAT Act. The petitioner argued that according to Section 27 of the TNVAT Act prevailing during the relevant period, a revision of assessment can be made within five years from the date of the original order. As the self-assessment was made on 30.06.2012 for the mentioned assessment years, any revision proceedings should have been initiated on or before 30.06.2017. However, the respondent initiated the revision proceedings only on 24.11.2017, which was beyond the five-year limitation period, rendering the impugned orders barred by limitations.

The petitioner relied on an unreported decision of a learned Single Judge of the High Court, where it was held that any proceedings initiated beyond the prescribed limitation period are impermissible in law. The Court emphasized that the amended provision increasing the limitation period to six years from the date of assessment came into effect only from 19.06.2012, and cannot be applied retrospectively to assessment periods that had already concluded. Drawing parallels to a previous case, the Court reiterated that the limitation period for revising assessments must be strictly adhered to and cannot be extended beyond the statutory limit.

Considering the principles established in the aforementioned decisions, the Court concluded that the revision proceedings initiated on 24.11.2017 for the assessment years 2007-2008 to 2010-2011 were belated and beyond the five-year limitation period. Consequently, the Court set aside all the impugned orders dated 28.03.2018, ruling in favor of the petitioner. As a result, the writ petitions were allowed, the impugned orders were annulled, and no costs were awarded. The connected miscellaneous petitions were closed accordingly, bringing the matter to a conclusion.