Limitation for suo motu tax revision runs from the original assessment order, and time-barred revisional notices are void.
Under Section 49(3) of the Chhattisgarh Value Added Tax Act, 2005, suo motu revision had to be initiated within three calendar years from the date of the original order sought to be revised, and the final revisional order had to be passed within one year of initiation. The limitation period was to be computed from the original assessment orders referred to in the notices, not from any later reassessment. As the notices were issued after expiry of the prescribed period, the revisional power had ceased and the consequent revisional orders, founded on time-barred notices, were invalid and quashed.
Issues: Whether the show-cause notices initiating suo motu revision under Section 49(3) of the Chhattisgarh Value Added Tax Act, 2005 were barred by limitation, and whether the consequential revisional orders could stand.
Analysis: Section 49(3) permits revision only if proceedings are initiated within three calendar years from the date of the order sought to be revised, and the final order must be passed within one calendar year from the date of initiation of proceedings. The notices in question specifically referred to the original assessment orders passed on earlier dates, and the limitation had therefore to be computed from those assessment orders and not from any later reassessment. Once the prescribed period expired, the power to initiate suo motu revision stood extinguished. The final revisional orders, being founded on time-barred notices, could not survive.
Conclusion: The notices initiating suo motu revision were barred by limitation, and the consequential revisional orders were invalid and were quashed.
Final Conclusion: The assessees succeeded, and the writ appeals as well as the writ petitions were allowed.
Ratio Decidendi: For suo motu revision under Section 49(3) of the Chhattisgarh Value Added Tax Act, 2005, limitation runs from the date of the original order sought to be revised, and proceedings initiated beyond the prescribed period are without jurisdiction; any revisional order founded on such barred initiation is void.
TaxTMI 
AI Drafter ✕
TaxTMI 
