Limitation in sales tax assessment cannot reopen a confirmed assessment at recovery stage after appeal.

Limitation under the Kerala General Sales Tax Act did not invalidate the assessment for 2000-2001, as the assessment dated 28.03.2006 was found to be within the period available under the proviso inserted by the Finance Act, 2005. Even on the argument that the assessment took effect only on dispatch or communication in September 2006, the substituted proviso introduced by the Finance Act, 2006 was held to cover it. The Court further held that limitation did not make the assessment a nullity, and a concluded assessment confirmed in appeal could not be reopened in writ proceedings at the recovery stage on a collateral challenge.

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Issues: Whether the assessment for the year 2000-2001 was barred by limitation under Section 17(6) of the Kerala General Sales Tax Act and whether such a concluded assessment could be challenged at the recovery stage after confirmation in statutory appeal.

Analysis: The assessment was completed on 28.03.2006, and the Court held that it fell within the time available under the proviso inserted by the Finance Act, 2005. Even on the appellant's case that the order took effect only on dispatch or communication in September 2006, the Court found that the substituted proviso introduced by the Finance Act, 2006 would still cover the assessment. The Court also held that a plea of limitation in such circumstances did not render the assessment a nullity, and that a final assessment confirmed in appeal could not be reopened in writ proceedings at the stage of recovery on a collateral challenge.

Conclusion: The assessment for 2000-2001 was held to be within time, and the challenge to the recovery proceedings was rejected. The appeal failed.

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