GEO SEA FOODS Vs. ADDL SALES TAX

JUDGEMENT

(1.) Attempts made by the legislature to initially prescribe a time limit for completing assessment under the provisions of the Kerala General Sales Tax Act, 1963, thereafter to limit the outer time limit in respect of assessments prior to 1.4.1993 and then to take away the outer time limit as far as assessments upto 1.4.1993, have given rise to quite a few litigations. Originally there was no prescribed time limit for completing an assessment. The assessments were to be completed within a reasonable time. For the first time, the Kerala Finance Act, 1993 introduced an amendment to Section 17 prescribing a period of 4 years. In the case of assessments pending as on 1.4.1993, the second proviso to Sub-section (6) thereof stipulated that such assessments should be completed within a period of four years from the date of publication of the Kerala Finance Act, 1993.

(2.) The Revenue took up the matter before the Supreme Court. While the matter was pending before the Supreme Court, the State introduced a further amendment to the Kerala Finance Act, 2000 inserting a new provision as Section 17A. The provision reads as follows :

(3.) Petitioners before us in these cases have not so far amended the pleadings. So much so, the scope of their Writ Petitions is limited only to the impact of second proviso to Section 17(6) - "Provided further that all assessments pending as on the 1st day of April, 1993 shall be completed within a period of four years from the date of publication of the Kerala Finance Act, 1993". Now Section 17(6) read with Section 17A leaves no room to interpret the provision contained in the second proviso to Section 17(6) and the expression 'assessment pending' as limiting its application only to cases which were pending well within a reasonable time and excluding cases which were pending for an unreasonably long period. The relevance of four years in the proviso is that Sub-section 6 has provided that "Any assessment under this section shall be completed within a period of four years from the expiry of the year to which the assessment relates."