Extended assessment limitation under Kerala sales tax law saved assessment for 1998-99 from being time-barred.

The amendment to section 17(6) of the Kerala General Sales Tax Act extended the assessment period from four to five years for the relevant window beginning on 31 March 2002 and ending on 31 March 2003. That extension was construed as covering assessments that would otherwise have become time-barred during that period, including assessment year 1998-99. On that basis, an assessment completed on 22 March 2004 fell within the extended limitation period and was not barred by time.

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Issues: Whether the assessment for 1998-99 was barred by limitation, and whether the amendment to section 17(6) of the Kerala General Sales Tax Act, 1963, extending the period for completion of assessment, applied to save the assessment completed on March 22, 2004.

Analysis: The original limitation under section 17(6) was four years from the end of the relevant year, but the Finance Act, 2002 introduced an amendment making the period five years for the relevant span from March 31, 2002 to March 31, 2003. The extended period was intended to cover assessments for the years that would otherwise have become time-barred during that window, including assessment year 1998-99. On that construction, the assessment completed before March 31, 2004 fell within the extended time limit.

Conclusion: The amendment applied to assessment year 1998-99, and the assessment was not time-barred.

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