Taxability of REP licence transfers and statutory assessment timelines upheld; delay plea rejected on pending assessment rules.

Transfer of a REP licence was treated as a sale of goods and therefore taxable under the Kerala General Sales Tax Act because binding Supreme Court authority recognised such transfers as sales for sales tax purposes. The limitation challenge also failed because the assessment proceedings were pending, the delay was attributable to the assessee's requests for time, and the assessments were completed within the statutory period prescribed for pending matters. The revisions were accordingly without merit, and the assessments were upheld.

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Issues: (i) Whether transfer of REP licence constituted a sale of goods exigible to tax under the Kerala General Sales Tax Act, 1963; (ii) Whether the assessment orders were barred by delay or limitation.

Issue (i): Whether transfer of REP licence constituted a sale of goods exigible to tax under the Kerala General Sales Tax Act, 1963.

Analysis: The transfer of an import licence was held taxable in view of the binding Supreme Court decision recognising such transfer as a sale for sales tax purposes. The Tribunal's view that the amount received on transfer of the REP licence was liable to tax was therefore correct.

Conclusion: The issue was decided against the assessee and in favour of the Revenue.

Issue (ii): Whether the assessment orders were barred by delay or limitation.

Analysis: The assessment proceedings remained pending, and the delay was attributable to repeated requests for time by the assessee. Section 17(6) of the Kerala General Sales Tax Act, 1963 prescribed a four-year period for completion of assessments from the expiry of the relevant year and also saved pending assessments as on 1 April 1993 for completion within four years from the publication of the Kerala Finance Act, 1993. Since the orders were passed within the statutory time permitted, the challenge based on delay failed.

Conclusion: The issue was decided against the assessee and in favour of the Revenue.

Final Conclusion: The tax revisions were devoid of merit, and the assessments were upheld both on taxability of the REP licence transfer and on the objection of delay.

Ratio Decidendi: Where a statute prescribes a specific period for completing pending assessments, an assessment made within that period cannot be invalidated merely on a general plea of delay, and transfer of a REP licence is taxable as a sale of goods for sales tax purposes.

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