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2018 (7) TMI 1766 - HC - VAT and Sales TaxTime Limitation - escapement of turnover - whether notices could be issued after the five year period as stipulated in Section 25 of the KVAT Act? - Held that:- Section 25(1) of the KVAT Act specifically speaks of a limitation of five years for proceeding to determine to the best of judgment the turnover, when the contingencies as enumerated under the provision occur. When there is no limitation prescribed for completion, there could only be the principles of reasonableness applied, on facts of individual cases, if a challenge is made with regard to that - We cannot presume the legislature having done it purposefully, especially when the limitation prescribed for was not for the final determination, but to 'proceed to determine', which definitely indicates initiation of proceedings for determination. The legislature also was aware of Section 19 of the KGST Act, which was in pari materia with Section 25 of the KVAT Act. The petition allowed, setting aside the notices issued beyond the limitation period as provided under Section 25(1) of the KVAT Act - appeal allowed.
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