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TMI Blog2018 (11) TMI 1355X X X X Extracts X X X X X X X X Extracts X X X X ..... number of dealers, and verification of the records produced by all of them culminated in the detection of offence on 30.09.2014. The delay in detection by issuance of notice, to the selling dealer has been explained which we have found to be satisfactory. The period of three years hence commences from the date of issuance of notice to the selling dealer. The order against the purchasing dealers is passed within the period provided of limitation. The argument that notices to the purchasing dealers were delayed and was not proximate to the verification of their records, has no legs to stand since the proceedings were finalised within three years from 30.09.2014 - the petitioners would have to be relegated to the statutory remedy. The petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nable time for completion of proceedings under Section 67, it was found that it should be five years as provided under Section 25 for re-assessment. On the commencement of such period of limitation we have followed a Division Bench judgment in W.A No.385/2009 dated 18.02.2009 [M/s. Acme Furniture and Interiors Vs.CTO] ; which held the commencement to be on detention of offence. We noticed the observation in W.A 385 of 2009 that there is no time provided for detection of offence, which we held should be within a proximate period from the date of inspection and any delay caused will have to be satisfactorily explained; except in cases where the proceedings are finalised within the period of limitation. On these broad principles laid down by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n offence had to be issued; which is a sure sign of detection of offence. When the records were submitted in the year 2012, there was no reason for waiting till 2017 to finalise the proceedings. As on 2012 there was a limitation period of three years provided under Section 67 of the KVAT Act and there is no reason why the intelligence Officer delayed the verification and intimation of the specific allegation against the purchasing dealers. This extended beyond the period of limitation of three years, argues learned Counsel. The subsequent amendment would not come to the aid of the Department since the limitation period of three years expired even before the notice against the present petitioners were issued. 6. The learned Special Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to commence. The records having been verified the selling dealer was issued with a notice on 30.09.2014 making specific allegation of offence having committed by him of suppression of sales. The said offence definitely was found on a verification of the records of the purchasing dealers too. 8. There is no satisfactory explanation as to why notices were not issued in the name of the petitioners, the purchasing dealers on 23.09.2014. But, even then, the conclusion of proceedings is within five years from the date of detection. As we found in W.A No.344/2017; if the finalisation is carried out within the limitation period there can be no allegation raised of the notice of penalty, the sure sign of detection of offence, being not proxima ..... X X X X Extracts X X X X X X X X Extracts X X X X
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