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2024 Supreme(Online)(KER) 258
HIGH COURT OF KERALA
Easwaran S., J
THE MATHRUBHUMI PRINTING AND PUBLISHING CO LTD., – Appellant
Versus
ASISTANT COMMISSIONER(SPECIAL CIRCLE I) – Respondent
WP(C) 33814/2018
Assessments cannot be reopened beyond the statutory limitation period established in the Central Sales Tax Act.
Headnote:
Limitation - Central Sales Tax - Section 9(2) - The court examined the limitation period for reopening assessments under the Central Sales Tax Act, clarifying that actions beyond the statutory time limits are impermissible, leading to the quashing of the reopening notice in question.
Fact of the Case:
The writ petition was filed by a printing and publishing company challenging a notice for re-opening an assessment for the financial year 2011-2012 under the Central Sales Tax Act on grounds of limitation.
Finding of the Court:
The court agreed with the petitioner, referencing a prior decision that established principles regarding the limitation on reopening assessments, thus quashing the notice issued against them.
Issues: Whether the notice for reopening an assessment is barred by limitation under Section 9(2) of the Central Sales Tax Act.
Ratio Decidendi: The reopening of assessments must adhere to the statutory time limits established under the Central Sales Tax Act; actions taken beyond these limits are unlawful.
Final Decision: The notice issued under Section 9(2) of the Central Sales Tax Act was quashed.
The present writ petition is filed by M/s.
Mathrubhumi Printing and Publishing Company Limited challenging Ext.P2 Notice of re-opening of the assessment under the provisions of Section 9 (2) of the Central Sales Tax Act, 1956 . The main point raised in the writ petition is the limitation with regard to the re- opening of such assessment. According to the petitioner a period of limitation is provided under the provisions of the Act and therefore the action of the respondents in issuing the notice to re-open the assessment already completed in the year 2011-2012 cannot be justified.
2. I have heard learned counsel Sri.K.P.Abdul Azeez appearing for the petitioner and Sri.Sayed M.Thangal, the learned Government Pleader appearing for the respondents.
The issue as to whether the notice is barred by limitation and also whether an assessment could be re- opened beyond the statutory time limits under Section 9 (2) of the Central Sales Tax Act was considered by a Division Bench of this Court in the decision reported in State of Kerala Vs. Periyar Plywoods ( 2020 KHC 781 ). On a consideration of the materials on record, I find that the principles laid down by the Division Bench will clearly apply to the facts of this Case. Accordingly, writ petition is allowed. Ext.P2 Notice under (2) of the Central Sales Tax Act is quashed. No order as to costs.
