2019 (5) TMI 321 - HC - VAT and Sales Tax

Time limitation - relevant date for initiation of final assessment order - Interpretation of statute - amended provisions of Section 16(1) of the TNGST Act - Assessment of escaped turnover - Whether the proceedings of the Respondent for revised assessment are barred by limitation? HELD THAT - The amendment would apply to the re-assessment proceedings because the limitation period under the pre-amended Section 16 expired on 31.03.2005 in W.P.No.36497 of 2006, whereas the amendment came into effect on 01.07.2002. As regards W.P.Nos. 36865 and 36866 of 2006, as stated earlier, the re-assessment proceedings were within the period of limitation under the preamended Section 16(1). Even otherwise, in view of the above conclusion regarding the applicability of the amendment, the re-assessment proceedings are not barred by limitation. Petition dismissed.

Summary

Issues Involved:
1. Whether the proceedings for revised assessment are barred by limitation under Section 16(1) of the Tamil Nadu General Sales Tax Act, 1959 (TNGST Act).

Detailed Analysis:

1. Issue of Limitation for Revised Assessment Proceedings:

Relevant Facts:
- W.P. No. 36497 of 2006: Pertains to Assessment Year 1999-2000, Original Assessment Order issued on 31.08.2001, pre-revision notice on 16.09.2005, objections filed on 24.11.2005, revised assessment order issued on 24.07.2006.
- W.P. No. 36865 of 2006: Pertains to Assessment Year 2000-2001, Original Assessment Order issued on 31.10.2002, rectified order on 02.01.2003, pre-revision notices on 16.09.2005 and 31.10.2005, objections filed on 24.11.2005, revised assessment order issued on 24.07.2006.
- W.P. No. 36866 of 2006: Pertains to Assessment Year 2000-2001, Original Assessment Order issued on 31.10.2002, rectification order on 02.01.2003, pre-revision notice on 16.09.2005, objections filed on 24.11.2005, revised assessment order issued on 24.07.2006.

Legal Provisions:
- Pre-amended Section 16(1) of the TNGST Act: Allowed re-assessment within five years from the end of the assessment year.
- Amended Section 16(1) (effective from 01.07.2002): Allowed re-assessment within five years from the date of the final assessment order.

Critical Issue:
- Whether the amended Section 16(1) applies to the re-assessment proceedings in these cases.

Arguments by Petitioner:
- The revised assessment orders are barred by limitation under the pre-amended Section 16(1).
- Cited several judgments to support the argument that the pre-revision notices and revised assessment orders were issued beyond the permissible limitation period.

Arguments by Respondent:
- The amended Section 16(1) should apply as the limitation period under the pre-amended provision had not expired when the amendment came into force.
- Cited judgments to argue that the law of limitation is procedural and retrospective, applying to all surviving causes of action as of the amendment date.

Court's Analysis:
- W.P. Nos. 36865 and 36866 of 2006: Pre-revision notices were issued within the limitation period under the pre-amended Section 16(1). Therefore, re-assessment proceedings are within the limitation period.
- W.P. No. 36497 of 2006: The amendment to Section 16(1) applies as the limitation period under the pre-amended provision had not expired by the amendment date (01.07.2002).

Principles Established:
- Limitation is procedural and ordinarily operates retrospectively unless the claim was already time-barred before the amendment.
- The amended law applies if the limitation period had not expired before the amendment came into force.

Conclusion:
- The amended Section 16(1) applies to the re-assessment proceedings in all three writ petitions.
- The writ petitions are dismissed as the revised assessment proceedings are not barred by limitation under the amended provision.

Order:
- The writ petitions are dismissed with no order as to costs. Consequently, connected miscellaneous petitions are closed.