Central sales tax assessment under Rule 6(5) must be completed within a reasonable time, not left open indefinitely.

Proceedings for completing Central Sales Tax assessments under Rule 6(5) cannot remain open indefinitely after a return is filed. The Kerala High Court noted that Section 9(2) applies the State assessment machinery, while Rule 6(7)(i) separately provides a four-year limit for escaped turnover. Reading the scheme together, the authority must act within a reasonable time, and that reasonable period cannot go beyond the outer limit reflected in Rule 6(7)(i). Delayed invocation of Rule 6(5) beyond that period was treated as unauthorised, and notices issued after the permissible time were set aside as unsustainable.

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Issues: Whether proceedings under Rule 6(5) of the Central Sales Tax Rules (Kerala), 1957 for completing assessment under the Central Sales Tax Act, 1956 are barred by limitation or must be initiated and completed within a reasonable time, having regard to Rule 6(7)(i).

Analysis: Section 9(2) of the Central Sales Tax Act, 1956 applies the State sales tax machinery for CST assessments, and Rule 6(5) requires the assessing authority, after the close of the year, to scrutinise the return and complete assessment. Rule 6(7)(i) separately deals with escaped turnover and prescribes a four-year period. The statutory scheme shows that once a return is filed, the assessment under Rule 6(5) cannot be kept open indefinitely. Even where no express period of limitation is provided, the authority must act within a reasonable time, and that period cannot extend beyond the outer limit indicated by Rule 6(7)(i). Amendments relied on by the State were held not to authorise delayed invocation of Rule 6(5) beyond that period.

Conclusion: The assessment proceedings and notices issued under Rule 6(5) beyond the permissible period were held to be unsustainable and liable to be set aside.

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