Point of Law: Section 19 of the Constitution Amendment Act provided for a window period to the States to remove any inconsistent enactments by way of amendment or repeal or until expiration of one year from such commencement whichever was earlier.

JUDGMENT & ORDER :

(Ujjal Bhuyan, J.

Issue raised in all the writ petitions being identical, those were heard together and are being disposed of by this common judgment and order.

2. We have heard Mr. S. Ravi, learned senior counsel, Mr.S.Dwarakanath, learned senior counsel, Mr.S.R.R. Viswanath, Mr.V.Bhaskar Reddy, Mr.Shaik Jeelani Basha, Mr.Karan Talwar, Mr.G.Narendra Chetty, Mr.A.V.A.Siva Kartikeya, Mr.P.Karthik Ramana, Mr.B.Srinivas, Mr.Tej Prakash Toshniwal, Mr.Pasam Mohith and Mr. Venkatram Reddy Mantur, learned counsel for the petitioners; and Mr.B.S.Prasad, learned Advocate General for the State of Telangana along with Mr.K.Raji Reddy, learned senior standing counsel for Commercial Taxes.

3. Challenge made in this batch of writ petitions is to the constitutionality of Telangana Value Added Tax (Second Amendment) Act, 2017.

4. It is the contention of the petitioners that Telangana Value Added Tax (Second Amendment) Act, 2017 is ultra vires the Constitution of India and thus unconstitutional. As a corollary, prayer has been made that all notices and orders issued or passed on the strength of the extended period of limitation of six years in terms of the aforesaid amendment Act should be declared as illegal, null and void and quashed accordingly.

5. Before proceeding further and to understand the provisions in its proper perspective, it would be apposite to first advert to the Telangana Value Added Tax Act, 2005, more particularly, those provisions which have been either omitted or amended or substituted by virtue of the Telangana Value Added Tax (Second Amendment) Act, 2017.

6. The Telangana Value Added Tax Act, 2005 was initially enacted as the Andhra Pradesh Value Added Tax Act, 2005. After bifurcation of the State, insofar State of Telangana is concerned, the above enactment has been renamed as ‘The Telangana Value Added Tax Act, 2005 (briefly, ‘the VAT Act”, hereinafter). It is an Act to provide for and consolidate the law relating to levy of Value Added Tax (VAT) on the sale or purchase of goods in the State of Telangana and for matters connected therewith and incidental thereto.

7. Chapter V of the VAT Act deals with procedure and administration of tax, returns and assessments. It comprises of Sections 20 to 40. Section 20 deals with returns and self-assessments. As per Sub-Section (1), every dealer registered under Section 17 of the VAT Act, shall submit such return or returns along with proof of payment of tax in such manner, within such time and to such authority as may be prescribed. Sub-Section (4) says that every dealer shall be deemed to have been assessed to tax based on the return filed by him, if no assessment is made within a period of four years from the date of filing of the return.

8. Section 21 deals with assessments. Sub-Section (1) of Section 21 says that where a VAT dealer or a Turnover Tax (TOT) dealer fails to file a return in respect of any tax period within the prescribed period, the authority prescribed shall assess the dealer for the said period for such default in the manner prescribed.

8.1. As per Sub-Section (2), if a VAT dealer or TOT dealer submits a return along with evidence for full payment of tax, subsequent to the prescribed time the assessment made under Sub-Section (1) shall be withdrawn without prejudice to any interest or penalty leviable.

8.2 Sub-Section (3) deals with a situation where the authority prescribed is not satisfied with the return filed by the VAT dealer or TOT dealer or the return appears to be incorrect or incomplete, in which event, he shall make the assessment to the best of his judgment within four years of due date of the return or within four years of the date of filing of the return, whichever is later.

8.3 Power to conduct scrutiny of accounts is provided in Sub-Section (4) and making of assessment in the event of willful evasion of tax is dealt with in Sub-Section (5). In Sub-Section (6) the prescribed authority has been empowered to make reassessment when the assess