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2018 (2) TMI 523 - HC - VAT and Sales TaxJurisdiction - power to revise the order of appellate authority - Whether the Additional Commissioner of Commercial Taxes was justified in invoking the powers under Section 64 (1) of the KVAT Act to revise the order of the Appellate Authority passed under Section 62 of the Act? - Held that: - the Addl. Commissioner is empowered to call for and to examine the record of any order passed or proceeding recorded under this Act and on such examination if it is found that any order passed by any Officer who is not above the rank of a Joint Commissioner, revision powers can be exercised provided such order is erroneous in so far as it is prejudicial to the interest of the Revenue. Time limitation - Whether the re-assessment proceedings initiated by the prescribed authority under the Act are barred by limitation as provided under Section 40 of the Act? - Held that: - it can be held that amendment to Section 40 has retrospective effect with effect from 01.04.2005 enhancing the period of limitation provided under Section 40 of the Act - the proviso to Section 40 have been amended with effect from 01.04.2012 by Act No.17/2012 and subsequently by Act No.54/2013 retrospective effect was given with effect from 01.04.2005 and the constitutional validity of the same having been upheld, the arguments of the learned counsel that the reassessment proceedings are barred by limitation is wholly untenable. Whether the reassessment proceedings initiated by the prescribed authority are barred by Section 32 of the Act? - Held that: - it is not only until the expiration of 5 years the books of accounts are required to be kept and maintained but also for such other period as may be prescribed or until the assessment reaches finality whichever is later. The phrase “until the assessment reaches finality” has to be read in conjunction with Sections 39 and 40 of the Act - it is clear that assessment also includes reassessment. The prescribed limitation for assessment/reassessment is in terms of Section 40. The limitation period being enlarged by the amendment carried out under Section 40 of the Act, the same shall have a bearing on Section 32. In the present case, the period of limitation as per the Amendment Act No.54/2013 is eight years with effect from 01.04.2005 i.e., 30.04.2013, the date of finality of the assessment, which would be the date of expiry of limitation to reassess the deemed assessments made under Section 38 of the Act for the assessment year 2005-2006. Reassessment proceedings were initiated by issuing notice dated 16.02.2013 and the reassessment order was passed on 22.04.2013 well within the period of limitation even as per Section 32 of the Act. The revisional order passed by the Addl. Commissioner of Commercial Taxes is justifiable - appeal dismissed.
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