JUDGMENT :

DAMA SESHADRI NAIDU, J.

Introduction:

1. An assessee questions the assessment proceedings on the grounds of limitation. The limitation periods in question relate to Section 25(1) and Section 56(2)(c) of the Kerala Value Added Tax Act. To subject a dealer to best judgment assessment, the limitation fixed is “five years from the last date of the year to which the return relates.” Similarly, under Section 56(2) of the Act, the sua sponte revisional power must be exercised before the four-year period expires from the year in which the order to be revised was passed.

How should we reckon the limitation under Section 25(1) and Section 56(2) of the KVAT Act? What does “commence” connote in Section 25(1) of the Act?

Facts:

Sterling and Wilson (P) Ltd. (“Sterling”) as an assessee under the KVAT Act, suffered the Ext.P1 assessment order for 2010-11. Later, it filed the Ext.P2 rectification application; that resulted in the Ext.P3 order.

2. As much depends upon the chronology, I may note that the Ext.P1 was passed on 30th September 2016; then Sterling submitted the Ext.P2 application, dated 03.11.2016, to have that assessment rectified; thereafter, the Assistant Commissioner (Works Contra