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TMI Blog2020 (11) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... d entail into reopening of assessments completed years back and assessee would not have relevant books of accounts and other records to defend the case against alleged escaped turnover. As per Rule 58(20) of KVAT Rules, assessee is required to maintain the books for a period of five years from the end of assessment year in question or two years from the date of disposal of the appeal or revision arising out of such assessment or from the date of completion of any other provisions under the Act connected with such assessment appeal or revision, whichever is later. Fixing of a reasonable period would have to be read in determining what reasonable should be. The oral scheme of KVAT Act in the interest of ensuring certainty in tax matters and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as surprised to receive revenue recovery notice issued by the 2nd respondent, shown to have been on the basis of some alleged arrears of sales tax. The recovery notices were purportedly based on the requisition of the first respondent assessing authority on the basis of assessment orders dated 29.3.2014 as arrears w.e.f 1.4.2005 and 1.4.2006 ie., for the assessment years 2005-06 and 2006- 07. 3. Learned counsel appearing on behalf of the petitioner submits that the petitioner made a reasonable enquiry and was informed by the assessing authority that CST assessment orders had been passed for the aforementioned period. Accordingly, the petitioner applied for copies as Exts. P1 and P2. The demand notices are Exts.P3 and P4 and recovery noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d time limit mentioned therein shall not be applicable in such cases. In support of the aforementioned contention, he relied upon the Division Bench judgment of this Court in Assistant Commissioner (Assessment) v. Grasim Industries Ltd. (2006 (1) KLT 821) and unreported judgment in Johnson Plastics v. Intelligence Officer (O.P No.8290 of 2003) dated 22.11.2007 and urges this Court for dismissal of the writ petition. 6. I have heard the learned counsel for the parties and appraised the paper book. The assessment orders as seen from the contents Exts.P1 and P2 are of March 2014 and without compliance of principles of natural justice. The recovery notices are of October 2014. The time limit prescribed vide amendment was, from five years, ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an allegation of suppressed / escaped turnover. No doubt, retrospective operation of Section 42(3) would entail into reopening of assessments completed years back and assessee would not have relevant books of accounts and other records to defend the case against alleged escaped turnover. As per Rule 58(20) of KVAT Rules, assessee is required to maintain the books for a period of five years from the end of assessment year in question or two years from the date of disposal of the appeal or revision arising out of such assessment or from the date of completion of any other provisions under the Act connected with such assessment appeal or revision, whichever is later. Fixing of a reasonable period would have to be read in determining what reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant year for the purpose of Section 25 shall be treated as pending and the time limit mentioned thereunder shall not be applicable in such cases. As far as the judgment cited by the learned Government Pleader, it pertains to non-maintaining of the Books would attract only the penal or otherwise similar consequences. Therefore, In my view, time limits specified in Rule 58(20) of KVAT Rules offer a safe guarding factor to define the limits of power under Section 42(3) of the Act. Meaning thereby, it would not be proper to re-open assessments to bring the tax escaped turnover, which cannot be exercised in a manner that prejudicially affect an assessee, who would not be in a position to meet the charge against him for want of books of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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