2013 (7) TMI 1156 - HC - VAT and Sales Tax

Summary

Issues involved: Appeal against decision quashing notice for re-assessment due to time limit under Rule 6(7) of Central Sales Tax (Kerala) Rules, 1957.

Judgment Summary:

The High Court of Kerala dismissed the appeal against the decision of the learned single Judge who quashed a notice proposing re-assessment for the year 2003-2004 due to exceeding the time limit prescribed under Rule 6(7) of the Central Sales Tax (Kerala) Rules, 1957. The notice was issued on 31/8/2010, which was beyond the four-year limit that expired on 31/3/2008.

The statutory authorities did not dispute the factual position that the notice was issued beyond the prescribed time limit. The Special Government Pleader argued that Rule 6(7) of the Rules was not applicable after the introduction of sub-section 3 of Section 6A of the Central Sales Tax Act, 1956. However, it was acknowledged that the assessment of escaped turnover could only be done under Section 9 of the Act and not under the provisions of the Act or Rules referred to.

Sub-section 2 of Section 9 empowers statutory officers to act under the Act subject to its provisions and rules made thereunder. The introduction of sub-section 3 of Section 6A was to allow re-assessment by the assessing authority on the discovery of new facts, while insulating other proceedings from the provisions of sub-sections 1 and 2 of Section 6A. The notice in question was related to determining escaped assessment, and the learned single Judge correctly applied Rule 6(7) of the Rules to find the notice beyond the prescribed time limit.

The High Court found no jurisdictional error or legal infirmity in the decision of the learned single Judge and dismissed the writ appeal.