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TMI Blog2019 (2) TMI 928X X X X Extracts X X X X X X X X Extracts X X X X ..... been found, the proceedings commence with the filing of return and this return is the basis on which the assessment is completed. There is hence no limitation provided for commencement of proceedings and the mandate could only be of a completion within a reasonable period. However the general sales tax law as also the Rules under the CST Act does not contemplate a period of limitation for conclusion of proceedings. All the same both contemplate a period of limitation for initiation of proceedings for re-assessment. It is only proper that in determining the reasonable time for initiation of proceedings for assessment, for which there is no specific time provided, the longer period prescribed for re-assessment is adopted. Notice for assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as available under Rule 6(7) of the CST(K) Rules, being four years from the expiry of the year to which the tax relates. 3. It is contended that Section 9(2) empowers the authorities under the general tax enactment to assess, re-assess, collect and enforce payment of any tax under the CST Act, exercising the powers available to them under the general sales tax law of the appropriate State and so carry out the provisions of the CST Act on behalf of the Government of India. In so carrying out the functions under the CST Act, the provisions under the general sales tax laws of the State, including provisions relating to returns, provisional assessment and so on and so forth, shall apply accordingly. It is the contention of the learned Couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ult in an anomalous situation of an assessment being permissible to be proceeded with within five years, while a re-assessment can be initiated only within four years of the expiry of the year to which the tax relates. 5. Sri. V.K. Shamsudheen, the learned Senior Government Pleader relies on Parisons Food (P) Ltd . v . State of Kerala [ R.P.No.559 of 2017 in W.A.No.1076 of 2013 connected case, decided on 29.11.2017] and the decision in C.T.O. v. Fijo Joseph [ W.A.No.1270 of 2017 connected cases, decided on 17.09.2018]. It is pointed out that both the aforesaid decisions specifically imported the limitation period as available under the KVAT Act for the purpose of completion of assessments under the CST Act; which is five ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as found reasonable if the proceedings were initiated within a period of five years; which is the time limit for re-assessment as provided under the KVAT Act. 7. However, the question now argued by the learned Counsel for the petitioner was never answered by either of the Division Benches. In such circumstance, we proceed to answer the same. We find that applying the very same principles under Section 9 of the CST Act, there is a prescription for a regular assessment under the CST (K) Rules as distinguished from a self-assessment under Section 21 of the KVAT Act. When there is a prescription under Rule 6 for proceeding to determine the tax payable, on either the returns not being filed or the returns being found to be incorrect and incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not vitiate either of the provisions since it is not difficult to operate the separate limitation periods for the different proceedings. If the Department carries out an assessment after 4 years, but within 5 years, the assessment would be perfectly in time but the Department would be disabled in taking a reassessment proceeding under Rule 6(7); even if an escapement is noticed. We garner support from the decisions of the Supreme Court as relied on by the Sri.Shamsudheen. 9. Madhya Pradesh Industries considered two provisions in a sales tax enactment, one of which dealt with determination of tax from dealers who filed the returns and the other from those who failed to file such returns. There was a limitation provided for issuing n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen, there could be a re-assessment proceeded with, on allegation of escapement of turnover from levy of tax within a period of four years. The limitation so provided for re-assessment again is a measure to ensure finality to proceedings already concluded. In the case of a regular assessment as has been found, the proceedings commence with the filing of return and this return is the basis on which the assessment is completed. There is hence no limitation provided for commencement of proceedings and the mandate could only be of a completion within a reasonable period. However the general sales tax law as also the Rules under the CST Act does not contemplate a period of limitation for conclusion of proceedings. All the same both contemplat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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