T.A. JOHNSON PROPRIETOR Vs. INTELLIGENCE OFFICER

JUDGEMENT

(1.) The petitioners in the above writ petitions challenge, the proceedings initiated under Section 67 of the Kerala Value Added Tax Act, 2003 (for short "KVAT Act" only) on the ground of the orders passed being vitiated on the ground of period of limitation having expired. The writ petitions were referred to a Division Bench since the question of limitation under Section 67 was pending before us in W.A No.344/2017 which we have decided today.

(2.) We have noticed in W.A No.344/2017; The Intelligence Officer v. Mohammed Sameer that under Section 67 initially, at the inception of the KVAT Act, there was a limitation provided of one year which was enhanced to three yeas in 2009 and then later removed from the statute in the assessment year 2014-15. We have also held that even if no limitation is specifically provided in the statute the proceedings should be finalised within a reasonable period. As to reasonable time for completion of proceedings under Section 67, it was found that it should be five years as provided under Section 25 for re-assessment. On the commencement of such period of limitation we have followed a Division Bench judgment in W.A No.385/2009 dated 18.02.2009 [M/s. Acme Furniture and Interiors v. CTO] ; which held the commencement to be on detention of offence. We noticed the observation in W.A 385 of 2009 that there is no time provided for detection of offence, which we held should be within a proximate period from the date of inspection and any delay caused will have to be satisfactorily explained; except in cases where the proceedings are finalised within the period of limitation. On these broad principles laid down by us as also the other Division Bench decision, we proceed to consider the question of limitation as urged in these writ petitions.

(3.) A dealer in tobacco one A.P Kakku's premises were inspected by the intelligence wing of the Commercial Taxes Department. Allegations were raised of unaccounted sales to various dealers in and around Thrissur. Summons were issued to the said Kakku as also the purchasing dealers to produce their books of accounts. It is submitted that the summons to the purchasing dealers were issued in December of 2012.