2016 (9) TMI 1008 - HC - VAT and Sales Tax

Review of order passed by assessing authority - validity of pre-assessment notice - completion of assessment - imposition of penalty - the KVAT Act - application for clarification - Held that - pursuant to the judgment of the Court dated 23.11.2015, the authority for clarification proceeded to take note of the assessment orders passed by the assessing authority and pass an order stating that, in view of the assessment orders already passed, he was not empowered to pass an order on merits in the application for clarification filed by the writ petitioner. It is also relevant to note that even when the writ petitioner filed W.P. (C).No.3579 of 2016 impugning the aforementioned order of the authority for clarification, the respondents in the said writ petition did not have a case that the assessment orders, stated to have been passed by the assessing authority, had been communicated to the writ petitioner before the date of the judgment in W.P.(C). No.35373 of 2015. As a matter of fact, it was under those circumstances that the judgment in W.P.(C).No.3579 of 2016 was passed quashing the assessment orders, and the order passed by the authority for clarification, and directing the latter to pass a fresh order on the application for clarification preferred by the petitioner in the writ petition on merits, and a further direction to the assessing authority to pass fresh assessment orders only after obtaining the order of the authority for clarification - in the absence of a timely review petition seeking review against the judgment dated 23.11.2015 in W.P.(C). No.35373 of 2015, R.P.No.129 of 2016 seeking review of the judgment dated 02.02.2016 in W.P.(C).No.3579 of 2016 cannot succeed - review petitions dismissed - decided against petitioner.

Summary

Issues:
1. Review petitions challenging judgments related to assessment orders under the Kerala Value Added Tax Act.
2. Contention regarding the timing of filing the review petitions in relation to the assessment orders.
3. Dispute over the communication of assessment orders to the writ petitioner.

Analysis:
1. The judgment addressed two review petitions concerning assessment orders under the Kerala Value Added Tax Act for the year 2014-2015. The petitioner, a dealer in energy drinks, filed Writ Petition (C) seeking clarification before assessment. The Court directed the authority for clarification to decide on the application within two months. Subsequently, the authority's order stated inability to consider the application due to assessment orders already passed. Another writ petition challenged this order, leading to quashing of assessment orders and a fresh directive to the authority for clarification to reevaluate the application.

2. The review petitions raised concerns about the timing of filing, alleging suppression of facts by the writ petitioner regarding being aware of assessment orders before the initial judgment. The Court noted discrepancies in the dates of service of assessment orders and emphasized the need for a timely review petition against the initial judgment if the assessment orders were indeed known to the writ petitioner before the judgment date. As the review petitions were filed after consequential actions were taken based on the initial judgment, they were dismissed.

3. The dispute centered on the communication of assessment orders to the writ petitioner before the judgment date. The Court considered the timing crucial, highlighting that the respondents did not assert the communication of assessment orders before the judgment in the initial writ petition. The judgment emphasized the importance of timely review petitions and dismissed the review petitions due to the delay in filing after consequential actions were initiated based on the initial judgment.

By thoroughly analyzing the issues raised in the review petitions and the Court's responses, the judgment clarified the significance of timely review petitions and the impact of factual discrepancies on legal proceedings under the Kerala Value Added Tax Act.