Assistant Commissioner of State Tax Vs Bhima Jewellery And Diamonds P. Ltd (Kerala High Court)
Kerala High Court held that the limitation period for re-opening assessment under Section 25(1) of the KVAT Act was six years. Notice issued on 12.02.2020 is well within the limitation period. Thus, matter remitted back to Assessing Authority for fresh decision.
Facts- The respondent/assessee had filed the writ petition, challenging an assessment order dated 16.03.2020 that was passed against it under Section 25(1) of the Kerala Value Added Tax Act, for the assessment year 2013-2014.
The primary contention taken in the writ petition was that it was vitiated on account of a non-compliance with the rules of natural justice. It was the contention of the assessee before the writ court that the notice u/s. 25(1) of the KVAT Act was issued only on 12.02.2020 and the assessment itself was completed on 16.03.2020 without affording an effective opportunity to the assessee to reply to the notice.
Conclusion- Held that the assessment year in question is 2013-14 and the limitation period for re-opening assessment under Section 25(1) of the KVAT Act was six years. The notice under Section 25(1) having been issued on 12.02.2020 was well within the period of six years contemplated under Section 25(1) as it stood then. No doubt, the Assessing Authority assumed that he had to complete the assessment pursuant to the notice issued under Section 25(1), before 31.03.2020. This perhaps may have led the Assessing Officer to act in haste, as alleged by the writ petitioner. We also find that the only relief that the assessee sought in the writ petition was for a re-examination of the issue on merits before the Assessing Officer, as the assessee itself did not have a case of the assessment order being barred by limitation. It was only on account of the erroneous assumption of the learned Single Judge that the writ petition came to be allowed on the ground of limitation. As we have found that the limitation issue did not arise in the writ petition, we set aside the impugned judgment of the learned Single Judge and allow this appeal to that limited extent.
