COMMERCIAL TAX OFFICER Vs. K.H. SHOES LIMITED

JUDGEMENT

(1.) THE writ petition is filed by the Revenue against the order of the Tamil Nadu Taxation Special Tribunal allowing O.P. No. 474 of 2002, wherein, the assessee challenged the reassessment proceedings on the ground that the same are hit by the limitation provided under Section 16 of the Tamil Nadu General Sales Tax Act, 1959.

(2.) THE assessment year relates to 1994 -95. It is stated that the assessment order was originally passed on April 29, 1996, wherein, the taxability on the sales of I?EP licence was considered and the turnover exempted from taxation. Consequent on the decision of the Supreme Court rendered on May 1, 1996 in the case of Vikas Sales Corporation v. Commissioner of Commercial Taxes reported in [1996] 102 STC 106 confirming the liability on the sale of REP licences, the assessing authority passed a revised assessment order relating to the turnover on sale of REP licence in his proceedings dated March 25, 1997. Thereafter, in respect of further turnover of Rs. 16,59,277, a second reassessment notice was issued on January 18, 2001 followed by another notice on February 20, 2001. The proposal was confirmed by order dated March 20, 2002. In the course of the proceedings dated March 20, 2002, the assessing authority noted the objections of the assessee that the proceedings were barred by limitation as provided for under Section 16(2) and took a stand that the notice had to be read as one issued under Section 55 of the Tamil Nadu General Sales Tax Act, 1959, and not under Section 16 of the said Act.

(3.) WE heard the submission of the learned Special Government Pleader (Taxes) appearing for the Revenue and the learned Counsel for the first respondent.