Extended assessment limitation under VAT law applies to escaped turnover proceedings where the proviso clearly enlarges time limits.

Section 25(1) of the Kerala Value Added Tax Act was read with the Finance Act, 2017 amendment extending the assessment period from five to six years and the third proviso extending proceedings that would otherwise expire on 31.03.2017 to 31.03.2018. The proviso was treated as plain and unambiguous, so escaped turnover proceedings for 2011-12 could validly be initiated within the extended time. The limitation challenge failed because an amendment enlarging the assessment period may apply to pending or still-uninitiated proceedings where the statutory language so provides.

---

---

Issues: Whether proceedings for escaped turnover assessment for the year 2011-12 were barred by limitation in view of the amendment to Section 25(1) of the Kerala Value Added Tax Act and the third proviso extending the time limit.

Analysis: The statutory period under Section 25(1) originally stood at five years, but the Finance Act, 2017 substituted a six-year period and added a third proviso extending to 31.03.2018 the period for proceedings expiring on 31.03.2017. The language of the proviso was held to be plain and unambiguous, and therefore applicable to proceedings that could still be initiated within the extended period. The challenge to the proviso itself was absent. The Court also relied on the principle that an amendment enlarging the period for assessment can operate on pending or otherwise unreached proceedings when the legislative language so indicates, and referred to the treatment of similar fiscal amendments in prior authority.

Conclusion: The limitation objection was rejected and the assessment proceedings were held to be within time. The writ petition failed.

---