Limitation for escaped-turnover assessment begins when proceedings are initiated, not when the final order is completed.

The phrase "proceed to determine" in section 25(1) of the Kerala Value Added Tax Act, 2003 was treated as requiring only initiation of escaped-turnover assessment within the prescribed period, not completion of the final order within that period. The provision was read in pari materia with section 19 of the Kerala General Sales Tax Act, 1963, and the earlier interpretation of that corresponding provision was affirmed on the basis that binding Supreme Court authority supports commencement of the decision-making process as sufficient for limitation. Later amendments introducing a third proviso and section 25B were noted, but the reference concerned only the unamended provision.

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Issues: Whether the phrase "proceed to determine" in section 25(1) of the Kerala Value Added Tax Act, 2003 requires completion of the escaped-turnover assessment within the prescribed period, and whether the earlier interpretation placed on the corresponding provision in the Kerala General Sales Tax Act, 1963 was correct.

Analysis: The provision in section 25(1) of the Kerala Value Added Tax Act, 2003 was treated as in pari materia with section 19 of the Kerala General Sales Tax Act, 1963. The earlier precedent construing section 19 held that the statutory requirement is satisfied if the assessment proceedings are initiated within the time prescribed, and that the final order may be passed after that period. The binding Supreme Court authorities relied upon in that precedent supported the wider understanding of the expression "proceed to determine" as covering the commencement of the decision-making process rather than insisting on completion within the same time-frame. The later amendments introducing a third proviso and section 25B were noticed, but the reference was confined to the correctness of the earlier interpretation of the unamended provision.

Conclusion: The earlier interpretation was affirmed. For section 25(1) of the Kerala Value Added Tax Act, 2003, initiation of proceedings within the prescribed period is sufficient, and completion of the assessment beyond that period does not by itself invalidate the proceedings.

Final Conclusion: The reference was answered in support of the revenue's position on limitation, and the matter was sent back to the Division Bench for further consideration.

Ratio Decidendi: Where the statutory phrase requires the authority to "proceed to determine", the limitation is satisfied by commencing assessment proceedings within time unless the statute expressly requires completion within that period.

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