2013 (9) TMI 1299 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to assessment order u/s A.P. VAT Act, 2005 for the period from 2005-06 upto October, 2011 primarily on the ground of limitation prescribed u/s 21(4) of the Act.

In this judgment, the High Court of Andhra Pradesh considered the challenge to the assessment order dated 25.06.2013 passed by the 1st respondent u/s A.P. VAT Act, 2005 for the period from 2005-06 upto October, 2011. The main contention was that the assessment for the period from April, 2005 to May, 2009 exceeded the limitation prescribed u/s 21(4) of the Act. The Court noted that as per sub-section (4) of Section 21 of the Act, the competent authority is empowered to make the assessment within a period of four years from the end of the relevant period. Despite no counter affidavit being filed by the respondents, it was conceded by the learned Special Government Pleader for Commercial Taxes that the assessment for the mentioned period was indeed beyond the four-year limitation period specified in Section 21(4) of the Act.

Considering the above, the High Court declared the impugned assessment for the period from April 2005 to May 2009 as illegal due to being barred by limitation. Consequently, the impugned order was set aside, and the 1st respondent was given the liberty to initiate fresh proceedings for the assessment from June, 2009 onwards, with the direction to pass an appropriate order following due process of law. The writ petition was disposed of at the stage of admission with no costs imposed, and any pending miscellaneous petitions in the writ petition were ordered to stand closed.