Assessment proceedings initiated after the statutory limitation period are invalid under the Kerala Value Added Tax Act.

JUDGMENT

Dated this the 10^th day of March, 2026 The writ petition is filed challenging Ext.P1 assessment order passed by the 2^nd respondent under Section 25 (1) of the Kerala Value Added Tax Act, 2003 (in short “the Act”).

2. When the matter was taken up for consideration today, the learned counsel for the petitioner contended that, in terms of Section 25 (1) of the Act, proceedings thereunder must be initiated within five years from the last date of the year to which the return relates. The assessment year in question is 2007–2008, therefore, proceedings for assessment of escaped turnover ought to have been initiated on or before 31.03.2013. However, the proceedings were initiated only on 28.06.2017, as evidenced by the pre- assessment notice referred to in Ext.P1 assessment order. Consequently, the assessment proceedings are barred by limitation.

3. In the above circumstances, it appears that the impugned proceedings are contrary to the statutory provisions contained in Section 25 (1) of the Act. The said issue stands covered by the decision of the Divsion Bench of this Court in State of Kerala v. Chowdary Rubber and Chemicals Pvt. Ltd. [2025 (2) KLT 413] , whereby the Division Bench of this Court found that even with respect to the assessment under A, the time limit under (1) is to be made applicable.

The issue involved in the present case also relates to an assessment made under Section 25 (1) read with A of the Act. In such circumstances, the question arising in this writ petition is squarely covered by the aforesaid decision and is fully applicable to the facts of the present case. Accordingly, the writ petition is allowed.

Sd/-