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Judgment
Mohan Shantanagoudar
The order at Annexure-A passed u/s 9(2) of CST Act, 1956, dated 7.7.2011, is called in question in these writ petitions on the ground that the said order is passed beyond the period of limitation.
The petitions deserve to be allowed in view of the limitation prescribed u/s 40 of the Karnataka Value Added Tax Act (for short hereinafter referred to as the ''Act''). Section 40(1)(a) of the Act prior to its amendment i.e., prior to 1.4.2011, prescribed the limitation of five years, for an assessment u/s 38 of the Act or reassessment u/s 39 of the Act, in respect of the tax due in respect of prescribed period. Now the period of limitation is reduced to 4 years by Act No. 12/2011 w.e.f. 1.4.2011.
Though there is a dispute as to whether the impugned order is relating to assessment of tax or reassessment tax, the fact remains that the impugned order is passed beyond the period of limitation of five years. Admittedly, the assessment is of the year 2005-06. The proceedings are initiated u/s 9(2) of CST Act, 1946 after the period of five years and the order is passed on 7.7.2011. If it is so, the impugned order is liable to be quashed as the same is time barred. Accordingly, the impugned order dated 7.7.2011 at Annexure-A stands quashed.
Petitions are allowed accordingly.