Arafa Agencies, Perumattom vs Commercial Tax Officer, ...
2023 Latest Caselaw 8209 Ker

                IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                     PRESENT
             THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH
         TUESDAY, THE 1ST DAY OF AUGUST 2023 / 10TH SRAVANA, 1945
                           WP(C) NO. 21237 OF 2017
PETITIONER/S:

             ARAFA AGENCIES, PERUMATTOM
             REPRESENTED BY ITS PROPRIETOR SRI.P.S.SHAJI.

             BY ADVS.SRI.AJI V.DEV
             SRI.M.G.SHAJI



RESPONDENT/S:

     1       COMMERCIAL TAX OFFICER, MUVATTUPUZHA
             MINI CIVIL STATION, MUVATTUPUZHA - 686 669.

     2       INSPECTING ASSISTANT COMMISSIONER, COMMERCIAL TAXES, MINI
             CIVIL STATION, MUVATTUPUZHA - 686 669.

     3       DEPUTY COMMISSIONER
             COMMERCIAL TAXES, TAX COMPLEX, BAZAR ROAD,
             MATTANCHERRY - 686 002.

     4       COMMISSIONER OF COMMERCIAL TAXES
             TAX TOWER KILLIPPALAM, KARAMANA P.O.,
             THIRUVANANTHAPURAM - 695 002.


OTHER PRESENT:

             RESHMITA-GP


         THIS WRIT PETITION (CIVIL) HAVING COME UP FOR HEARING ON
01.08.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 W.P.(C) No.21237/2017
                                    -2-




                        JUDGMENT

The present writ petition under Article 226 of the

Constitution of India has been filed for quashing Ext.P3

assessment order dated 31.03.2017, passed by the Commercial

Tax Officer, Muvattupuzha. The Assessment Year is 2010-11.

2. As per Section 25(1) of the KVAT Act 2003, the

assessment proceedings ought to have been completed within

five years i.e., on or before 31.03.2016. By Finance Act 2017,

Section 25(1) has been added whereby one-year further time

has been granted for completion of assessment with the

approval of the Deputy Commissioner. In this case, the notice

for reopening the assessment is dated 14.02.2017. Admittedly,

the said notice was issued beyond five years i.e., which expired

on 31.03.2016. The Finance Act 2017 has come into force with

effect from 01.07.2017. When the notice dated 14.02.2017 came

to be issued at that time, the extended period of one year was W.P.(C) No.21237/2017

not available to the Department inasmuch as the Finance Act

2017 did not provide for retrospective operation.

I find that the notice dated 14.02.2017 and the re-

assessment order Ext.P3 dated 31.03.2017 are beyond the

period of limitation of five years and, therefore, are illegal.

Ext.P3 is therefore set aside. The present writ petition is

therefore allowed.

Sd/-

DINESH KUMAR SINGH JUDGE

jjj W.P.(C) No.21237/2017

APPENDIX OF WP(C) 21237/2017

PETITIONER EXHIBITS

EXHIBIT P1 A TRUE COY OF THE PRE-ASSESSMENT NOTICE PROPOSING ASSESSMENT FOR THE YEAR 2010-11 DATED 14.2.2017.

EXHIBIT P2 A TRUE COPY OF THE REQUEST FILED BY THE PETITIONER IN RESPONSE TO EXT.P1 DATED 03.3.2017.

EXHIBIT P3 A TRUE COPY OF THE ASSESSMENT ORDER PASSED FOR THE YEAR 2010-11 DATED 31.3.2017.