Case Law Details
Karvy Innotech Limited Vs State of Maharashtra (Bombay High Court)
In the case of Karvy Innotech Limited vs. State of Maharashtra, the Bombay High Court recently delivered a significant judgment regarding an assessment order under the Maharashtra Value Added Tax Act, 2002 (MVAT Act). The petitioner, engaged in IT and electronic equipment trading, challenged an order issued beyond the statutory limitation period.
The petitioner contended that the order issued by the Deputy Commissioner of State Tax on 23rd June 2020, relating to the financial year 2015-16, was time-barred under Section 23(2) of the MVAT Act. This section mandates that no assessment order shall be made after four years from the end of the relevant assessment year. The petitioner argued that since the return period was from 1st April 2015 to 31st March 2016, the assessment order passed after 31st March 2020 was invalid.
Moreover, the petitioner highlighted procedural irregularities, including the denial of a personal hearing despite requests and the issuance of notices not compliant with statutory provisions. These points were vigorously contested by the respondent, who argued that the order was within the limitation period and that procedural lapses were justified under pandemic-related constraints.
The court examined conflicting dates and digital signatures presented by both parties. It scrutinized records from the SAP system, revealing discrepancies between dates of creation and signing of the assessment order. Ultimately, the court found that the order served to the petitioner was digitally signed on 23rd June 2020, indicating its creation beyond the statutory deadline.
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