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TMI Blog2016 (10) TMI 1016X X X X Extracts X X X X X X X X Extracts X X X X ..... Held that: - the statute provides for self assessment and the provision for assessment of escaped turnover specifically provides a limitation of five years within which the proceedings to determine the escaped turnover had to be initiated. The power of extension conferred on the Deputy Commissioner was with respect to the completion of assessment, which has no relevance to the initiation of the proceedings as such. In such circumstance, Section 25B of the K.V.A.T. Act has to be held to be redundant insofar as the period provided under Section 25(1). Obviously, it is a mistake occurred in drafting which, however, being explicit and clear and not being in any manner ambiguous, would not be open for any purposive interpretation by this Court. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the total turnover. The appellate remedy was not invoked since the assessee had a contention that the proceedings are hit by limitation and the same had to be taken prior to 31.03.2011, as is permitted under Section 25(1) of the K.V.A.T. Act. 3. Section 25(1) of the K.V.A.T. Act speaks of an assessment of escaped turnover to be taken up by the assessing authority, in various circumstances detailed there-under, leading to a presumption of turnover having escaped assessment, within a time of five years from the last date of the year to which the return relates. The specific words employed is that the assessing officer shall 'proceed to determine, to the best of its judgment, the turnover which has escaped assessment' within t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P8 is specifically referred to, to urge that orders were issued by the Deputy Commissioner extending the period of limitation under Section 25B of the K.V.A.T. Act, by orders dated 17.03.2014 and 27.09.2014. A further finding is arrived at in Ext.P8 that the limitation was further extended by the third proviso of Section 25(1) of the K.V.A.T. Act. In this context it is to be noted that Section 25B and the referred proviso speaks of completion of assessment and not the initiation of the proceedings as such. 6. Section 25B of the K.V.A.T. Act is extracted hereunder: 25B. Extension of period of limitation for assessments in certain cases. Notwithstanding anything contained in section 24 or in section 25, in cases where any investigatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithin a reasonable period. 8. At the risk of repetition it has to be noticed that Section 25(1) of the K.V.A.T. Act does not speak of any period for completion of assessment and if a proceeding was initiated prior to the limitation period, then going by the Full Bench decision, there would only be a mandate on the department to complete the assessment within a reasonable period, which, again is not a statutory mandate. Without having initiated the proceedings within the limitation period, the consequence of the limitation cannot be averted by extending the period of completion, for which no limitation is provided for in the statute. In such circumstance, it has to be held that the proceedings initiated herein, by Ext.P1 dated 12.08.2014, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as such. In such circumstance, Section 25B of the K.V.A.T. Act has to be held to be redundant insofar as the period provided under Section 25(1). Obviously, it is a mistake occurred in drafting which, however, being explicit and clear and not being in any manner ambiguous, would not be open for any purposive interpretation by this Court. The Government would be advised to look into the said provision and make suitable amendments. The amendments, if so made, definitely would not revive the cause of action in the present case; where a right has accrued and the liability to reassessment having been extinguished. 11. W.P.(C) No. 24609/2016 also deals with the same issue of limitation, but in a different perspective. The assessment years wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod. But, however, there were other aspects raised, including other instances and an enhanced quantum of escaped turnover in Exts.P8 and P9 notices, which were not put to the petitioner within the limitation period. 13. In this context, it is to be noticed that on the completed assessment as per the original notices issued within the limitation period, it was the petitioner who challenged the same before this Court and obtained an order with respect to one of the aspects in their favour. A re-determination was directed keeping all issues open and on such remand made there can be no fresh proceedings taken, on other issues, especially since the limitation period was over by then. Hence, what could be proceeded with by the department on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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