KGST Penalty Proceedings Time-Barred as They Were Not Started Within Reasonable Time: Kerala HC

Taj Garden Retreat Vs State of Kerala (Kerala High Court) The Kerala High Court allowed an intra-court appeal and quashed a show cause notice proposing penalty under Section 45A of the Kerala General Sales Tax Act, 1963 (KGST Act), holding that such proceedings cannot be initiated beyond a “reasonable period of time” even where the statute does not prescribe a specific limitation period. The appellant, an assessee dealing in Indian Made Foreign Liquor (IMFL) and Foreign Made Foreign Liquor (FMFL), was subjected to an inspection on 08.03.2012. Based on this inspection, a show cause notice p...