PARISONS FOODS (P) LTD. Vs. STATE OF KERALA

JUDGEMENT

(1.) Can an assessment under the Central Sales Tax Act, 1956 ('the CST Act' for short) be completed belatedly by availing the time extended for the relevant year under the Kerala General Sales Tax Act 1963 ('the K.G.S.T. Act' for short) The petitioner filed return for the year 2003-04 under the C.S.T. Act conceding a total inter-state sales turnover of Rs. 77,77,79,446/- and claimed exemption for the turnover of Rs. 77,08,88,957/- being consignment sales. The second respondent did issue Ext.P1 notice dated 30.5.2009 under R.6(5) of the Central Sales Tax (Kerala) Rules, 1957 ('the Rules' for short) in order to complete the assessment. The assessment could not however be completed since there was a change in the fast track team constituted under S. 17D of the K.G.S.T. Act in the meanwhile. P3 notice dated 21.2.2009 was thereafter issued after verification of the books of accounts followed by Ext.P4 revised notice dated 22.1.2010 by the second respondent under R.6(5) of the Rules. Exts.P1, P3 and P4 pre-assessment notices are impugned on the sole ground that they have been issued well beyond four years of the assessment year 2003-04 (which ends on 31.3.2004). It is fairly conceded that no period has been prescribed for completing the assessment under the Rules even though a period of four years has been prescribed for revised assessment under Rr.6(7) and 6(8) of the Rules. But the petitioner maintains that a period of four years should be read into R.6(5) of the Rules also which deals with the completion of assessment under the Act. A series of decisions starting from Calcutta Discount Company Ltd. v. Income Tax Officer & Anr., 1961 41 ITR 191 are cited at the Bar to contend that even notices of assessment could be quashed.

(2.) The respondents rely on S. 9(2) of the Act and contend that the authorities constituted under the K.G.S.T. Act to make assessment are vested with the power to assess tax under the C.S.T. Act as well. Such authorities for that purpose can exercise all or any of the powers they have under the general sales tax law of the State and of course subject to the other provisions of the C.S.T. Act and the Rules made thereunder. The respondents assert that no time limit has been prescribed for completing the assessment under the C.S.T. Act or R.6(5) of the Rules and can hence bank on S. 17 of the K.G.S.T. Act. It is pointed out that S. 17 of the K.G.S.T Act as amended by the Finance Act, 2009 permits completion of assessment relating to the years upto and including the year 2004-05 pending as on 31.3.2009 on or before 31.3.2010. The respondents add that the Writ Petition filed challenging the pre-assessment notices are misconceived since the petitioner can very well file objections thereto and invoke statutory remedy thereafter if needed.

(3.) I heard Mr. Jayasankar, A.K., Senior Advocate on behalf of the petitioner and Mr. Manoj P. Kunjachan, Government Pleader on behalf of the respondents.