Limitation for escaped assessment notice under VAT law cannot be extended by a later inspection date.

Notice for escaped assessment under the Tamil Nadu Value Added Tax Act was held time-barred because the statutory limitation had expired before issuance. The assessment year was 2010-2011 and, even on the assumption of a six-year period from the relevant cut-off date of 30.06.2012, the last permissible date was 30.06.2018. As the notice was issued on 28.08.2018, it fell beyond limitation. The later inspection date did not extend or postpone the statutory time limit on the facts presented, so the notice and consequential proceedings were invalid.

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Issues: Whether the notice issued for escaped assessment under Section 27(1)(a) of the Tamil Nadu Value Added Tax Act, 2006 was barred by limitation.

Analysis: The assessment related to the year 2010-2011 and the relevant cut-off date was 30.06.2012. Even on the assumption of a six-year limitation period, the last permissible date expired on 30.06.2018. The notice issued on 28.08.2018 was therefore beyond the limitation period. The contention that the inspection occurred later did not justify postponing the commencement or extension of the statutory time limit in the facts of the case.

Conclusion: The notice and the consequential proceedings were invalid as time-barred, and the challenge succeeded in favour of the assessee.

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