Case Law Details
URC Construction Pvt Ltd Vs Assistant Commissioner of State Tax (Kerala High Court)
In this case, URC Construction Pvt Ltd (hereinafter referred to as “the appellant”) appealed against an interim order dated 21.02.2024 issued by a learned Single Judge of the Kerala High Court in W.P(C) No.2715 of 2024. The interim order directed the appellant to deposit 25% of the assessed tax dues under Ext.P2 assessment order within two weeks as a condition for staying the recovery of the remaining tax, interest, and penalty pending the disposal of the writ petition.
The appellant, represented by Smt. K. Krishna, was unable to comply with the deposit requirement within the stipulated time. Subsequently, another Single Judge vacated the stay on recovery on 13.03.2024, and the writ petition was adjourned to allow the Government Pleader to file a counter affidavit.
Upon hearing arguments from both parties—the appellant represented by Smt. K. Krishna and the respondents represented by Sri. V. K. Shamsudheen—the Division Bench of the Kerala High Court deliberated on the core issue raised in the writ petition. The crux of the dispute pertained to the legality of the assessment order (Ext.P2), which the appellant argued was issued beyond the statutory limitation period prescribed under Section 25(1) of the Kerala Value Added Tax (KVAT) Act.
The appellant contended that the assessment order was initiated based on an audit objection under Section 25A of the KVAT Act, which purportedly overrides the limitation period prescribed under Section 25(1). However, this interpretation was under scrutiny before another Single Judge of the High Court, specifically regarding whether an audit objection could indeed extend the limitation period for assessment.
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