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2025 Supreme(SC) 859
SUPREME COURT OF INDIA
B.V. NAGARATHNA, SATISH CHANDRA SHARMA, JJ.
M/s. Naresh Kumar Gupta - Appellant
Versus
State Of Punjab & Another - Respondents
Civil Appeal No.4033 of 2025 With CIVIL APPEAL NO.4034 OF 2025 CIVIL APPEAL NO.4035 OF 2025 CIVIL APPEAL NO.4036 OF 2025 CIVIL APPEAL NO.4037 OF 2025 CIVIL APPEAL NO.4038 OF 2025 CIVIL APPEAL NO.4039 OF 2025 CIVIL APPEAL NO.4040 OF 2025 CIVIL APPEAL NO.4041 OF 2025 CIVIL APPEAL NO.4042 OF 2025 CIVIL APPEAL NO.4043 OF 2025 CIVIL APPEAL NO.4044 OF 2025 CIVIL APPEAL NO.4045 OF 2025 CIVIL APPEAL NO.4046 OF 2025 CIVIL APPEAL NO.4048 OF 2025 CIVIL APPEAL NO.4049 OF 2025, CIVIL APPEAL NO.4050 OF 2025 CIVIL APPEAL NO.4051 OF 2025, TRANSFERRED CASE(C) NO.41 OF 2023 TRANSFERRED CASE(C) NO.42 OF 2023 TRANSFERRED CASE(C) NO.43 OF 2023 TRANSFERRED CASE (C) NO.44 OF 2023 TRANSFERRED CASE(C) NO.7 OF 2024 TRANSFERRED CASE(C) NO.8 OF 2024 TRANSFERRED CASE(C) NO.9 OF 2024 TRANSFERRED CASE(C) NO.37 OF 2024
Decided on : 01-05-2025
For the Appellant(s) : Ms. Manju Jetley, AOR By Courts Motion, AOR Mr. Sanchar Anand, Adv. Dr. Sushil Balwada, AOR Mr. Aman Kumar Thakur, Adv. Mr. Abhishek Bhardwaj, Adv. Mr. Aman Bhardwaj, Adv. Mr. Sandeep Goyal, Adv. Mr. Sujit Ghosh, Sr. Adv. Mr. Pawanshree Agrawal, AOR Ms. Aakriti Gupta, Adv. Mr. Nitin Bansal, Adv. Ms. Akriti Goel, Adv. Ms. Aakriti Goel, Adv. Mr. Puneet Agarwal, Adv. Ms. Mansi Khurana, Adv. Mr. Chetan Shukla, Adv. Mr. Santosh Kumar, AOR Mr. Arvind Datar, Sr. Adv. Mr. Sujit Ghosh, Sr. Adv. Ms. Mannat Waraich, AOR Mr. Ashray Behura, Adv. Ms. Ananya Goswami, Adv. Ms. Arya Mittal, Adv.
For the Respondent(s): Mr. Ajay Pal, AOR Mr. Varun Chugh, Adv. Mr. Krishna Kant Dubey, Adv. Mr. Bhuvan Kapoor, Adv. Mr. Shreekant Neelappa Terdal, AOR Mr. Archana Pathak Dave,, A.S.G. Mr. Sahil Bhalaik, AOR Mr. Tushar Giri, Adv. Mr. Siddharth Anil Khanna, Adv. Mr. Ritik Arora, Adv. Mr. Shivam Mishra, Adv. Mr. Gouttam Polanki, Adv. Mr. Gowtham Polanki, Adv. Mr. Sewa Singh, Adv. Mr. Shadan Farasat, Aag, Sr. Adv. Mr. Talha Abdul Rehman, D.A.G. Ms. Nupur Kumar, AOR Mr. Aman Naqvi, Adv. Mr. Jagjit Singh Chhabra, AOR
The amendment extending the assessment period in tax laws is constitutionally valid and can be applied retrospectively, emphasizing the legislative authority to enact such provisions.
Headnote:(A) Punjab Value Added Tax Act, 2005 - Section 29 - Constitutional validity of amendment by Punjab Value Added Tax Act, 2013 - Challenges against amendment regarding reassessment timeline and natural justice principles - The law permits retrospective amendments impacting limitation periods for tax assessments, justified under legislative power. (Paras 1-14)
(B) Legislative Power - States can enact retrospective laws; does not infringe judicial interpretation authority. (Paras 10-11)
(C) Tax Dues - Appellants must pay principal tax dues without interest/penalties, as per discretion allowed in judgment. (Paras 17d)
Facts of the case:
The appellants contested the amendment's validity asserting it violated natural justice and reversed previous judgements. The High Court found the amendment justifiable under legislative discretion.
Findings of Court:
The Supreme Court affirmed the High Court's ruling, deeming the amendment as constitutionally valid and dismissing the appeals.
Issues: Whether the amendment extending the assessment period is constitutionally valid.
Ratio Decidendi: Amendments to taxation laws can be retrospective, balancing administrative efficiency and taxpayer rights.
Result: Civil Appeals dismissed.
| Table of Content |
|---|
| 1. disposal of multiple civil appeals on common judgment (Para 1 , 2 , 3) |
| 2. legal challenges to amendments in pvat act (Para 4) |
| 3. high court's stance on amendment validity and reasonableness (Para 5 , 6 , 10) |
| 4. interpretation of legislative intent in amendments (Para 7 , 11 , 13) |
| 5. rationale behind minimum amendment period of assessments (Para 8 , 9) |
| 6. judicial affirmation of legislative amendments. (Para 12) |
| 7. restrictions and implications of nokia case decision (Para 14 , 15 , 16) |
| 8. order on payment of outstanding tax dues (Para 17) |
JUDGMENT :
NAGARATHNA, J.
CIVIL APPEAL NO.4033/2025, CIVIL APPEAL NO.4035/2025, CIVIL APPEAL NO.4037/2025, CIVIL APPEAL NO.4039/2025, CIVIL APPEAL NO.4034/2025, CIVIL APPEAL NO.4038/2025, CIVIL APPEAL NO.4036/2025, CIVIL APPEAL NO.4045/2025, CIVIL APPEAL NO.4043/2025, CIVIL APPEAL NO.4040/2025, CIVIL APPEAL NO.4041/2025, CIVIL APPEAL NO.4042/2025, CIVIL APPEAL NO.4046/2025, CIVIL APPEAL NO.4048/2025, CIVIL APPEAL NO.4049/2025, CIVIL APPEAL NO.4050/2025, CIVIL APPEAL NO.4051/2025:
1. The above appeals are disposed of in terms of the following common judgment.
2. All the impugned orders in these Civil Appeals followed the result in Amrit Banaspati Company Ltd. vs. State of Punjab & Others, Civil Writ Petition No.21811 of 2014 (“Amrit Banaspati”) which was disposed of by a separate order and judgment dated 07.08.2015 by the High Court of Punjab & Haryana at Chandigarh. An appeal against the above judgment before this Court by the aforesaid assessee was dismissed as withdrawn vide order of this Court dated 04.05.2016 in SLP (Civil) No.26731 of 2015.
3. The common question of law arising in these appeals is whether the amendment to Section 29 of the PUNJAB VALUE ADDED TAX ACT , 2005 [henceforth “PVAT Act”] by the PUNJAB VALUE ADDED TAX ACT , 2013 is constitutionally valid or not. For the sake of immediate reference, Section 29 of the PVAT Act, before and after it was amended, is extracted herewith:
| Section 29 (4) [before the amendment on 15.11.2013] | Section 29 (4) [after the amendment on 15.11.2013] |
| 29. Assessment of tax. *** (4) An assessment under sub section (2) or sub-section (3) may be made within three years, after the date when the annual statement was filed or due to be filed whichever is later. Provided that where circumstances so warrant, the Commissioner may by an order in writing, allow assessment of a taxable person or a registered person after three years, but not later than six years, from the date, when annual statement was filed or due to be filed by such person, whichever is later. | 29. Assessment of tax. *** (4) An assessment under subsection (2) or sub-section (3), may be made within six years after the date when the annual statement was filed or due to be filed whichever is later. Provided that the assessment under sub section (2) or subsection (3), in respect of which annual statement for the assessment year 2006-07 has already been filed, can be made till the 20th day of November, 2014. Explanations: (1) The limitation period of six years for an assessment under sub-section (2) or sub-section (3), shall also apply to those cases in which the aforesaid period of six years has yet not expired. (2) It is clarified that prior to commencement of the Punjab Value Added Tax (Second Amendment) Act, 2013, the Commissioner was not required to issue any notice to the concerned person before extending the limitation period of assessment. 29(10A) Notwithstanding anything to the contrary contained in any judgment, decree or order of any Court, tribunal or other authority, an order passed by the Commissioner under subsection (4) prior to commencement of the Punjab Value Added Tax (Second Amendment) Act, 2013, shall not be invalid on the ground of prior service of notice or communication of such order to the concerned person. |
4.
