Pending proceedings requirement bars assessment action once finality and limitation have already expired under VAT law.

Section 34(8A) of the Gujarat Value Added Tax Act, 2003 can be invoked only when assessment or other proceedings are actually pending. Where the return had already attained finality by self-assessment and the statutory periods for audit assessment, reassessment and revision had expired, a belated notice or internal scrutiny could not supply jurisdiction. The HC held that once limitation had run out and no proceeding was pending, the assessment order was without jurisdiction and was liable to be quashed.

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Issues: Whether an assessment order made under section 34(8A) of the Gujarat Value Added Tax Act, 2003 could be sustained when no assessment or other proceeding was pending and the period of limitation for assessment, reassessment and revision had already expired.

Analysis: The petitioner's return for the relevant year had already attained finality by self-assessment, and the statutory periods for audit assessment, reassessment and revision had expired before the impugned notice and assessment were issued. The provision invoked by the assessing authority permits action only during the course of pending proceedings. In the absence of any pending assessment proceeding, mere internal scrutiny or a belated audit objection could not create the jurisdictional basis required by section 34(8A). The Court followed the earlier Division Bench view that such power cannot be exercised after the assessment has become final and limitation has run out.

Conclusion: The assessment order under section 34(8A) was without jurisdiction and was liable to be quashed. The issue was decided in favour of the assessee.

Ratio Decidendi: Powers under section 34(8A) of the Gujarat Value Added Tax Act, 2003 can be exercised only when proceedings are actually pending; once the assessment has become final and the statutory period of limitation has expired, such jurisdiction cannot be invoked.

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