Time-barred reassessment under VAT law was quashed because the statutory limitation had expired before action was taken.

Assessment/revision proceedings under the Kerala Value Added Tax Act were held unsustainable where the notice and order were issued after the statutory limitation period had expired. The assessment related to 2011-12, while the impugned action was taken on 26 March 2019, beyond the limitation ending on 31 March 2018. The court also noted that the 2018 amendment to Section 25 had earlier been held illegal and unconstitutional to the extent it exceeded legislative competence. On those facts, the reassessment lacked authority of law and was quashed in favour of the assessee.

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Issues: Whether the assessment/revision proceedings initiated under Section 25(1) of the Kerala Value Added Tax Act, 2003 were barred by limitation and liable to be quashed.

Analysis: The assessment related to the year 2011-12 and the notice/order was issued on 26 March 2019, after the period of limitation under Section 25(1) had expired on 31 March 2018. The Court also noted that the amendment to Section 25 introduced by the Kerala Finance Act, 2018 had earlier been held illegal and unconstitutional to the extent it was beyond the legislative competence of the State Legislature. In these circumstances, the impugned assessment could not be sustained.

Conclusion: The assessment/revision proceedings were time-barred and unsustainable, and the impugned order was quashed in favour of the assessee.

Final Conclusion: The writ petition succeeded because the assessment was initiated beyond the permissible limitation period and therefore could not survive judicial scrutiny.

Ratio Decidendi: A reassessment or revision initiated after the expiry of the statutory limitation period is without authority of law and liable to be set aside.

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