Retrospective limitation amendment rejected, leaving reassessment under the Tamil Nadu VAT Act barred by limitation and without jurisdiction.

Reassessment under the Tamil Nadu Value Added Tax Act was held time-barred because the original assessment was completed on 10.06.2011 and the five-year limitation expired on 09.06.2016. The later amendment to Section 27, introduced by Act 23 of 2012 with effect from 19.06.2012, was treated as prospective and could not be applied retrospectively to revive the reassessment power. The court noted that the issue had already been settled by binding authority accepted by the Department. The reassessment order was therefore without jurisdiction.

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Issues: Whether the reassessment order was barred by limitation under Section 27(1) of the Tamil Nadu Value Added Tax Act, 2006, and whether the amendment extending the limitation period could be applied retrospectively.

Analysis: The original assessment had been completed on 10.06.2011, and the five-year limitation period expired on 09.06.2016. The reassessment was therefore beyond time unless the subsequent amendment to Section 27, introduced by Act 23 of 2012 with effect from 19.06.2012, could be applied to revive the power to reassess. The amendment was treated as prospective, and the longer limitation period could not be invoked against the petitioner. The Court also noted that the issue had already been decided in earlier binding authority and accepted by the Department.

Conclusion: The reassessment order was barred by limitation and without jurisdiction, and the challenge succeeded in favour of the petitioner.

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