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2018 (9) TMI 1802 - HC - VAT and Sales TaxLimitation under Section 6(5) of the Central Sales Tax Rules, 1957 - period of limitation for completion of assessment - CST Act - KGST Act - Held that:- Under the the CST Rules the limitation, to “proceed to determine” is four years as provided under Rule 6(7). Looking at the nature of the statute and the rights and liabilities thereunder, we are of the opinion that there could be a reasonable period prescribed of five years for initiation of proceedings for completion of assessment under the CST Act also. We say this because the four year limitation under Rule 6(7) & (8) is for assessment of escaped turnover; while Rule 6(5) contemplates an assessment at the first instance after the return is filed. Under the value added tax regime even for assessment of escaped turnover the limitation is five years; for initiation of proceedings. Hence we find the same to be reasonable for proceeding to carry out the assessment after the return is filed; under the CST Act. Reliance is placed on sub-clause (iii) tocontend that the CST assessment has to be treated as pending for the purpose of Section 23 and the time limit mentioned therein shall not be applicable in such cases. We have to notice that the amendments have been brought in after the limitation expired in certain cases, which is before us for consideration. In any event, we have to emphasise that the provision brought in is for extension of period for the purpose of Section 25, which speaks of an assessment of escaped turnover and not the initial completion of assessment. We are of the opinion that the provision would have no application to the present set of cases - The cases in which notices alone wereissued and completion of assessment has not been effected, wherever it has been upheld, necessarily the assessee would be entitled to file objections within 30 days from the date of receipt of the certified copy of this judgment and the Assessing Officer would complete the proceedings in accordance with law, leaving open the remedy of the assessee to file statutory appeals as against the quantum, but not against the question of limitation. The assessment orders wherever they have been upheld, have been upheld only on the question of limitation.
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