Bhima Jewels Pvt. Ltd Vs State Tax Officer (Kerala High Court)
In a recent ruling, the Kerala High Court provided relief to Bhima Jewels Pvt. Ltd., holding that the Limitation Act is applicable to proceedings initiated under Section 25A of the Kerala Value Added Tax (KVAT) Act. The decision came in a writ petition filed by the jeweler, challenging an order passed by the State Tax Officer concerning the assessment year 2012-13.
Bhima Jewels contended that the assessment proceedings for the 2012-13 period were time-barred. The company argued that the notice, which commenced the Section 25A proceedings, was issued on September 23, 2024, significantly beyond the statutory time limit. Despite this objection being raised before the respondent, it was dismissed, leading to the contested Ext.P4 order.
The petitioner cited a prior judgment from the same High Court, Joy Alukkas (India) Ltd. v. State of Kerala [WP(C) No.504/2017], as a precedent. In the Joy Alukkas case, the Court had comprehensively determined that the prescribed period of limitation under the KVAT Act indeed applies to proceedings under Section 25A.
The Kerala High Court, after reviewing the arguments from both parties, concurred with Bhima Jewels’ submission. The Court noted that, given the assessment year was 2012-13, the statutory limitation period had clearly expired by the time the Ext.P2 notice was issued. Consequently, in alignment with the principles established in the Joy Alukkas judgment, the High Court intervened, deeming the proceedings that culminated in Ext.P4 legally unsustainable.
