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2019 (7) TMI 1666 - HC - VAT and Sales TaxValidity of assessment proceedings - time limitation - Section 31 of the Bihar Value Added Tax Act, 2005 - attachment of bank accounts - no scrutiny or assessment was carried out before the ‘due date’ within the meaning of the explanation attached to Section 24 of ‘the Act’ - HELD THAT:- For a conjoint reading of Section 31 and Section 27 would confirm that while liberty has been granted to the assessing authority to proceed in the matter of reassessment based on a departmental audit made under Section 26(3) of ‘the Act’, with 4 years of the ‘due date’, the outer limit for conclusion of such obligation is found in the 3rd proviso attached to Section 27 and the reason is because the omission or failure or non-disclosure has been treated equivalent to a non-filing of the return as manifest from the legislative intent. Having observed thus, there is no infirmity in so far as the issue of limitation raised by Mr. Ranjan is concerned and the proceedings are within time. The assessing authority has completely failed on his discharge and which is confirmed from the order dated 23.10.2017 whereby proceeding has been mechanically initiated by the assessing authority on a simple consideration of the departmental audit objection and on receipt of the report. Though Mr. Chiranjiva Ranjan advocates for putting a quietus to the matter on lapse but since the initiation is within the time frame and indulgence is invited on account of procedural irregularity in the proceeding, we are persuaded to remit the matter to the assessing authority, who shall consider the audit objection and proceed in the matter in accordance with law bearing in mind the legal position settled, within a maximum period of three months from the date of receipt/production of a copy of this judgment. The assessment order dated 31.03.2018 together with the demand notice of the same date, impugned at Annexures 1 and 1/2 to the writ petition, along with the attachment notice dated 24.1.2019, impugned at Annexure 3, are quashed and set aside - Petition allowed.
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