Assessment proceedings initiated beyond statutory time limits infringe upon the provisions of Section 25(1) of the Kerala Value Added Tax Act.

J U D G M E N T

Dated this the 24^th day of March, 2026 The petitioner, who is a partnership firm, is a registered dealer under the Kerala Value Added Tax Act , 2003 (in short “the Act”) in the State. The issue pertains to this writ petition is the assessment order issued under Section 25 (1) of the KVAT Act for the assessment year 2010-11. However, the assessment for 2010–2011 was completed under (1)

on 31.03.2016.

2. The counsel for the petitioner contends that, as per the provisions of Section 25 (1) of the Act, the proceedings under must be initiated within five years from the last date of the year to which the return relates. In the present case, the return relates to the period 2010– 2011, whereas the notice under (1) was issued only on 25.07.2016.

3. Under such circumstances, it appears that the proceedings are against the statutory provisions of Section 25 (1) of the Act. The said issue is squarely covered in favour of the petitioner by the decision of the Hon’ble Apex Court in the case of The Assistant Commissioner (Assessment) v.

M/s. Cholayil Pvt. Ltd., [(2022) 14 SCC 779].

Accordingly, the writ petition is allowed.