Case Law Details
Rungta Mines Limited Vs State of Jharkhand (Jharkhand High Court)
Jharkhand High Court held that Jharkhand Value Added Tax Act, 2005 [JVAT Act] doesn’t have any provision for initiation of re-assessment proceedings against a re-assessment order. In case assessing authority is allowed to initiate repeated re-assessment proceeding merely on dictate of audit party there would be no finality of assessment.
Facts- The petitioner is primarily engaged in the business of manufacturing Sponge Iron, M.S. Billets and TMT bars. Vide the present writ petitioner, the petitioner has been challenged re-assessment order passed by the Assessing Authority, wherein, pursuant to an audit objection raised by the office of the Accountant General, re-assessment order was passed in the exercise of the power u/s. 42(3) of the Jharkhand Value Added Tax Act, 2005.
The primary contention of the Petitioner is that re-assessment orders have been passed beyond the statutory period of limitation prescribed under the JVAT Act and Section 42(3) of the JVAT Act is only a provision which provides the circumstances under which re-assessment proceedings can be initiated, and it has been further contended that only enabling provision for carrying out re-assessment proceedings under the Act is contained under Section 40 read with Section 40(4) of the JVAT Act, which prescribes the period of limitation of five years and since the re-assessment orders have been passed beyond the statutory period, the same is without jurisdiction.
Conclusion- Held that merely because audit objection has been raised, the same would not authorize the Assessing Authority to proceed with re-assessment and the Assessing Authority has to record his satisfaction on the audit objection.
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