STATE OF KERALA Vs. GEORGE JACOB

JUDGEMENT

(1.) THE question raised in this revision filed by the State is whether the sales tax assessment of the respondent for the year 1998 -99 completed on 22.03.04 is barred by limitation or not. The Tribunal by relying on Section 17(6) of the KGST Act held that since the time for completion of the assessment is 4 years from the end of the relevant year, the last date for completion of assessment for 1998 -99 was 33.03 and so much so, the Tribunal declared the assessment as time barred and consequently invalid.

(2.) WE have heard Government Pleader appearing for the petitioner and Sri.R. Ramdas, counsel appearing for the respondent. Government Pleader has relied on Annexure A1 which is the proceedings issued by the Deputy Commissioner of Commercial Taxes on 17.3.03 under Section 17 (7) of the KGST Act extending the period for assessment for 1998 -99 beyond 31.03.03. According to the Government Pleader, by virtue of the proceedings issued by the Deputy Commissioner the assessment was not barred by limitation. Counsel appearing for the respondent however contended that the proceedings of the Deputy Commissioner produced in this Court was not relied on by the Department before the first appellate authority or before the Tribunal and consequently the Tribunal had no occasion to consider the same. Besides this, he submitted that no enquiry or crime was pending investigation against the respondent and there was no good or sufficient reason justifying the Commissioner to issue Annexure A1 order. We agree with the contention of the counsel for the respondent that the respondent cannot be surprised by producing the proceedings of the Deputy Commissioner before this Court for the first time. However, we find from the order of the first appellate authority that the assessment is sustained by him by referring to the amendment introduced to Section 17(6) with effect from 31.03.02 and which remained in force till 31.03.03. It is seen that the Finance Act, 2002 introduced an amendment to Section 17 (6), whereby the limitation provided for assessment was 5 years instead of the usual period of 4 years and the said provision was in force from 31.03.02 to 31.03.03. The question to be considered is whether this amendment will save the assessment of the respondent for the year 1998 -99 which was completed beyond the usual period of 4 years, but within 5 years from the end of the relevant year. According to the counsel for the respondent the amendment is not applicable for the assessment year 1998 -99 and the limitation for that is only for 4 years. The Government Pleader on the other hand contended that the amendment will be applicable for those assessments which get time barred on account of expiry of 4 years between these two dates, i.e., 31.03.02 and 31.03.03.