2023 (12) TMI 728 - HC - VAT and Sales Tax

Time limit for finalising of redoing the assessment - issuance of notice after 12 years from the date of the order - compliance with the time prescribed under Section 17D of KGST Act - HELD THAT - The limitation prescribed for passing the assessment/revised assessment would not be applicable to the facts of the present case inasmuch as the high Court had set aside the original assessment and remanded the matter back to assessing authority to redo the assessment. Therefore, the proposed assessment is neither the original assessment nor the revised assessment and the limitation prescribed for assessment and revised assessment would not be applicable to the facts of the case. The question whether on remand also the limitation period prescribed for revised assessment would be applicable does not call for consideration in the facts of the present case inasmuch as it is not known that when the petitioner had supplied the copy of the judgment passed by the high Court before the assessing authority. The final order yet to be passed in pursuance to the proposed assessment in Ext. P8. This Court had directed the petitioner to file reply to Ext. P8 proposed assessment order and the petitioner has not filed the reply. There are no substance to interfere in this writ petition at this stage - petition dismissed.

Summary

Issues involved:
The issues involved in this case include challenging an assessment order under the Kerala General Sales Tax Act, 1963, remand of the matter back to the assessing authority for a fresh order, issuance of notices for redoing assessment after a significant period, and the applicability of time limits for completing the assessment.

Assessment Order Challenge:
The petitioner filed a writ petition impugning the notice proposing a taxable turnover for GST purposes based on an assessment order completed under the Kerala General Sales Tax Act. The original assessment order was challenged previously, leading to a remand for a fresh order by the High Court.

Notice for Redoing Assessment:
After the remand, a fast track team was constituted to complete the assessment for the financial year 2004-05. The petitioner raised objections to producing records due to the significant time elapsed since the original order was set aside. Subsequent notices were issued for producing documents, with the petitioner arguing against the validity of the proceedings for redoing the assessment.

Legal Arguments:
The petitioner contended that issuing notices for redoing the assessment after a considerable time period was against the law, citing the time limits prescribed under the KGST Act. The petitioner relied on previous judgments to support the argument that the notices were not in compliance with legal requirements.

Court's Decision:
The Government Pleader argued that the limitation for completing the assessment would not apply in this case since the High Court had set aside the original assessment and directed the redoing of the assessment. The Court considered the submissions and concluded that the limitation for passing the assessment or revised assessment did not apply in this scenario.

Final Judgment:
The Court dismissed the writ petition but granted the petitioner the liberty to appear before the assessing authority, inspect records, and file a reply within a specified period. Failure to file a reply would result in the assessing authority proceeding to pass appropriate orders. If the petitioner appeared, they would be given an opportunity for a hearing before a final order was passed.