Prospective limitation amendment cannot revive a time-barred reassessment under the Tamil Nadu VAT Act

An amendment extending the reassessment limitation period from five years to six years under section 27(1)(a) of the Tamil Nadu Value Added Tax Act was held to operate prospectively unless clear retrospective intent is shown. Because the relevant assessment year had already ended and the reassessment power was already time-barred under the earlier five-year period, the extended limitation could not be used to revive the expired authority. The reassessment order was therefore barred by limitation, and the impugned order was set aside.

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Issues: Whether the reassessment order was barred by limitation and whether the amended six-year period could be applied to an assessment period that had already ended.

Analysis: The challenge turned on the interpretation of section 27(1)(a) of the Tamil Nadu Value Added Tax Act, 2006, as amended to extend the limitation period from five years to six years. The relevant assessment year was 2007-2008, and the original assessment had been completed before the amendment came into force. The Court followed the principle that an amendment enhancing the limitation period operates prospectively unless the statute clearly indicates retrospectivity. Since the reassessment order was issued beyond the pre-existing five-year period, the amended provision could not be invoked to revive a time-barred power.

Conclusion: The reassessment order was barred by limitation and the amended provision could not be applied retrospectively. The writ petition was allowed and the impugned order was set aside.

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