TMI Blog2022 (2) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 79 and it was only after passing an order under Section 79(1) that the respondent would be entitled to invoke Section 39(1) and not before that; in other words in order to claim eight years under Section 40, respondents were not entitled to pass a composite order by invoking both Sections 39 and 79, but had to necessarily pass an independent order under Section 79 after providing an opportunity to the petitioner and thereafter pass another order under Section 39 also after giving an opportunity to the petitioner. In view of the failure on the part of the respondents to follow the prescribed procedure and since no reasonable or sufficient opportunity was provided in favour of the petitioner before passing the impugned orders, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant Commissioner of Commercial Taxes(Audit)-2.5, DVO-02, Bangalore, for the tax period April, 2013 to March, 2014 as per Annexure- S. (III) Issuance of a writ, order or direction in the nature of certiorari to quash the order No.ACCT(Audit)-2.5/2021-22 dated 27.04.2021 under Section 39(1) read with Section 36 and Section 72(2) of the Karnataka Value Added Tax Act, 2003 against assignment No.395345837 dated 17.08.2020, passed by Assistant Commissioner of Commercial Taxes (Audit)-2.5, DVO-2, Bangalore, for the tax period April, 2013 to march, 2014 as per Annexure-T. (IV) Issuance of a writ, order or direction in the nature of certiorari to quash the order No.ACCT (Audit)-2.5/2021-22 dated 27.04.2021 under Section 79 of the KVAT Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile its objections and contest both proceedings. It is submitted that in view of the undisputed fact that the subject matter of this petition pertains to the Assessment Year, 2013-14, the reassessment ought to have been concluded on or before 30.03.2019 i.e., within five years as provided under Section 40(1) of the KVAT Act. However, the impugned proceedings pursuant to the proposition notice have been initiated only on 05.04.2021 beyond the period of limitation by seeking to place reliance on Section 40(2) of the KVAT Act by invoking Section 79 of the KVAT Act, which provides a period of eight years, which expires on 30.03.2022; it is therefore contended that in the absence of providing reasonable and sufficient opportunity to the petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t order. In the instant case, it is the specific contention of the respondents that the respondents are entitled to the period of eight years prescribed under Section 42 of KVAT Act since the petitioner fraudulently evading payment of tax during the aforesaid assessment year 2013-14. However, separate notices under Section 39(1) of the KVAT Act and 79 of the KVAT Act have not been issued to the petitioner. On the other hand, one composite notice invoking both Section 79 and 39(1) have been issued, both of which culminated in the orders passed under Section 39(1) and 79 of the KVAT Act, both dated 27.04.2021 on the ground that the petitioner did not contest the proceedings and nor did he file objections. 6. It is relevant to state that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pugned Proposition Notice bearing No.ACCT(Audit)-2.5/2020-21 T-201/21-22 dated 05.04.2021 vide Annexure-R, the impugned Proposition Notice No.ACCT/Audit-2.5/2020-21 T- 20/21-22 dated 05.04.2021 vide Annexure-S, the impugned order No.ACCT (Audit)-2.5/2021-22 dated 27.04.2021 vide Annexure-T and the impugned order No.ACCT(Audit)-2.5/2021-22 dated 27.04.2021 vide Annexure-U and the impugned order, Form VAT 350, bearing No.ACCT/Audit-2.5 T- No.628/2021-22 dated 12.08.2021 vide Annexure-X, all issued/passed by respondent No.2, are hereby quashed. (iii) The matter is remitted back to the stage of proposition notice at Annexures-R and S, both dated 05.04.2021 respectively. (iv) The petitioner is directed to file objections and produce docume ..... X X X X Extracts X X X X X X X X Extracts X X X X
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