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2016 (12) TMI 1737 - HC - VAT and Sales TaxTime Limitation - Validity of assessment order and assessment notice - Rule 6(5) of the CST Rules - issuance of bogus C forms - Whether there is any limitation for issuing a notice under Rule 6(5) of the Central Sales Tax Rules (Kerala), 1957 and completing the assessment under the CST Act? Held that:- There is no dispute about the fact that there is no separate return to be filed under the CST Act. Return filed under the KVAT Act itself is a valid return for CST Act also. The statute does not provide for a period of limitation. Though such a question is pending before the Division Bench, when a contention is raised, it has to be decided. As matters stand now, there cannot be any dispute regarding the right of assessee to treat the assessments as completed within a reasonable time - If we look at the statutory provision under Rule 6(5), once a return is filed, the officer is bound to complete the assessment, after the close of the year. If no action is taken for completing the assessment within a reasonable period, the assessee can treat the assessment as completed. Thereafter the only procedure that is available to reopen the assessment on ground of escaped turnover is under Rule 6(7). A procedure under Rule 6(5) cannot be adopted at any point of time. It has to be done within a reasonable time or atleast before the time stipulated in Rule 6(7) - Even going by the statutory provision under Rule 6(5), the assessment has to be completed within a reasonable time, which shall not be later than the period prescribed under Rule 6(7). Rule 6(5) clearly provides that for taking action in respect of incorrect or incomplete returns, enquiry has to be conducted by the assessing authority after giving the dealer an opportunity to prove the correctness and completeness of the return submitted by him. It is after issuing such a notice that the assessing authority shall proceed to determine the turnover to the best of his judgment. This process has to be initiated within the specified time. If after issuing notice, there is delay in completing the assessment, the proviso in terms of Finance Act, 2010 and subsequent Finance Acts may render assistance to the State. Petition allowed - decided in favor of petitioner.
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