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2020 (6) TMI 327 - HC - VAT and Sales TaxJurisdiction - powers of the competent authority to initiate the revision of the assessment as per Section 25(1) after lapse of six years - HELD THAT - The issue is decided by the judgment of this Court in BAIJU A.A. AND OTHERS VERSUS STATE TAX OFFICER, STATE OF KERALA AND OTHERS 2019 (12) TMI 469 - KERALA HIGH COURT . In Para 21, the amendments to Section 25 of the KVAT Act through the Kerala Finance Act 2018 was declared to be illegal and unconstitutional in as much beyond the legislative competence of the State Legislature. Be that as it may, the limitation in the instant case expired as per the provisions of the 25(1) of the KVAT Act on 31st of March 2018, whereas the Ext.P1 assessment order is dated 26th March 2019 much beyond thereof. The assessment order dated 26th March 2019 could not have been revised after expiry of six years - the assessment order is devoid of the merits, and is quashed - petition allowed.
Issues:
Challenge to assessment proceedings under Kerala Value Added Tax Act 2003 for the year 2011-12; Rectification petition invoking Section 66 of the Act; Legality of assessment order dated 26th March 2019 under Section 25(1) of the KVAT Act; Interpretation of limitation period under Section 25(1) of the Act; Judicial review of assessment order beyond the prescribed time limit. Analysis: The petitioner, a business entity under the Kerala Value Added Tax Act 2003, sought to quash assessment proceedings and rectified assessment order for the year 2011-12. The petitioner filed monthly and annual returns, which were accepted, but later received an assessment order dated 26th March 2019 under Section 25(1) of the Act. The petitioner filed a rectification petition under Section 66 of the Act due to errors in the order, claiming the notice was time-barred as the limitation expired on 31st March 2018. The Government Pleader did not dispute the notice dated 26th March 2019 (Ext.P1). The controversy regarding the authority's power to revise assessment after six years was addressed in previous writ petitions and decided in a judgment declaring certain amendments to Section 25 of the KVAT Act as illegal. The court noted that the assessment order dated 26th March 2019 was beyond the limitation period prescribed by Section 25(1) of the Act, which expired on 31st March 2018. Despite a pending appeal, the court held that the assessment order could not be revised after the lapse of six years and thus quashed the order, deeming it unsustainable. In conclusion, the High Court allowed the writ petition, finding the assessment order dated 26th March 2019 to be devoid of merit and quashed it as it was beyond the prescribed time limit under Section 25(1) of the Kerala Value Added Tax Act 2003.
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