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2017 (1) TMI 1220 - HC - VAT and Sales TaxInterpretation of statute - Limitation provided u/s 25(1) of the KVAT Act - whether the words employed in sub section (1) indicates only an initiation of proceedings within the limitation period and not the conclusion of the assessment? - Held that: - The proviso, as it reads, only indicates that completion of assessments including those in which an extension is made under Section 25B and expiring on 31.03.2015, would stand extended up to 31.03.2016. There is no limitation for completion of assessment provided therein - In the present case the assessment year is 2010-2011 and the limitation for initiating proceedings, u/s 25(1) expires only on 31.03.2016. The notice impugned herein is dated 19.03.2016; within the limitation period as provided u/s 25(1) of the Act. The argument is that the proviso deems conclusion of assessment within the extended period. Section 25B confers powers on the Deputy Commissioner to extend the time for completion of investigation or enquiry, for good and sufficient reasons notwithstanding Sections 24 and 25, thus enabling extension of the period of completion of the assessment beyond the period specified in those Sections. Section 25(1) does not speak of any limitation for completion of the proceedings. In such circumstances, if at all extension of completion of assessment is permitted by the Deputy Commissioner, that would not enable the State to initiate proceedings after the limitation period is over nor can a limitation be found from the proviso - even if an extension is made under Section 25B, the same would not enable the State to initiate proceedings after expiry of the period of limitation provided under sub section (1) of Section 25 of the Act. The power of extension granted under Section 25B having been found to be redundant, there can be no limitation for conclusion of the proceedings and as the Full bench held, there can only be a mandate that the proceeding should be completed within a reasonable time - petition dismissed - decided against petitioner.
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