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2021 (8) TMI 90 - HC - VAT and Sales TaxValidity of assessment order - Period of limitation - Power to extend the time limit for passing the assessment order - order is passed after lapse of more than six months to the date of completion of the Audit Visit Report (AVR) on 20th June, 2012 - periods from 2009-10 to 2011- 12 - grant of ex post facto extension of limitation by CST - proviso to Section 42 (6) of the Odhisa VAT Act - HELD THAT:- It is seen that “Audit Assessment”, which is triggered by the “Audit Visit Report” in terms of Section 41 (4) of the OVAT Act is different from a regular assessment as it is meant to enable the department to revisit the assessment for previous years on detection of “suppression of purchases or sales or both, erroneous claims of deductions including input tax credit, evasion of tax or contravention of any provision of the Act affecting the tax liability of the dealer.” - The non-obstante clause at the beginning of Section 42 (6) of the OVAT Act indicates the importance of completion of proceedings in a time bound manner. Section 42 (6) mandates the assessment should be completed within a period of six months “from the date of receipt of the Audit Visit Report.” In the present case, there is no dispute at all that the notice in Form VAT-306 was served on the Petitioner on 1st October, 2012. The six months period from that date ended on 31st March, 2013. The assessment was therefore required to be completed on or before 31st March, 2013. Viewed from another angle, the CST was presented with a fait accompli by the time he applied his mind to whether extension should be granted at all or not. There was already an assessment order passed on 15th May 2003 by the time he had to decide on the question of extension. The language of the proviso to Section 42 (6) requires the CST to assess “the merit of each such case.” It is not a case of automatic extension of time. The Court is unable to sustain the validity of the impugned assessment order dated 15th May 2013, which, on the date it was passed, was in violation of Section 42(6) of the OVAT Act - Petition allowed.
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