2019 (9) TMI 1083 - HC - VAT and Sales Tax

Extension of time limit for initiating proceedings - Section 25(1) of the Kerala Value Added Tax Act, 2003 - availability of alternate remedy - HELD THAT - The appellant is permitted to challenge Exts.P10 and P11 before the appropriate Appellate Authority. If the appellant files properly constituted appeals against those orders before the appropriate Appellate Authority, within a period of three weeks from the date of receipt of a certified copy of this judgment, such authority shall accept those appeals as if it is filed within the time limit stipulated. Appeal allowed.

Summary

Issues:
Challenge to judgment of Single Judge regarding extension of time limit for initiating proceedings under KVAT Act and KSGST Act.

Analysis:
The appellant challenged the judgment of the Single Judge, which allowed the writ petition to the extent of quashing the impugned proceedings, except for Exts.P10 and P11. The Single Judge found that the original notices proposing the reopening of assessment for those two years were within the time limit stipulated under Section 25 of the KVAT Act and Section 17 of the KGST Act. The appellant filed a writ appeal aggrieved by the judgment's refusal to challenge Exts.P10 and P11.

One contention raised was that the mere issuance of notices is not enough to overcome the limitation period; the assessment itself must be completed within the stipulated time. Another contention was about the dispute regarding the service of subsequent notices issued before finalizing the assessments. The Government Pleader argued that these issues could be raised in a statutory appeal, as there is an effective alternate remedy available.

The appellant's counsel submitted that the appellant is willing to avail the remedy of appeal if permitted to raise all contentions from the writ petition before the Appellate Authority. The Court allowed this request, modifying the judgment to permit the appellant to challenge Exts.P10 and P11 before the appropriate Appellate Authority. The appellant was given three weeks to file appeals against those orders, and the Appellate Authority was directed to accept the appeals as if filed within the stipulated time limit. The Appellate Authority was also instructed to decide on the appeals without being bound by the findings in the impugned judgment, focusing on the questions raised before it.