Time-barred audit assessment cannot be revived by a later extension under the Odisha VAT scheme.

Section 42(6) of the Odisha Value Added Tax Act required audit assessment to be completed within six months of receipt of the Audit Visit Report, and any extension had to be granted by the Commissioner on the merits of the case within the statutory framework. An assessment order passed after expiry of that period could not be cured by a later ex post facto extension, because the proviso contemplated prior, meaningful exercise of discretion and Section 42(7) reinforced the time-bound scheme. The assessment was therefore treated as time-barred and invalid, and the subsequent extension did not validate it.

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Issues: Whether an audit assessment completed after expiry of the six-month period under Section 42(6) of the Odisha Value Added Tax Act, 2004 could be validated by a subsequent extension granted by the Commissioner.

Analysis: Section 42(6) required completion of audit assessment within six months from receipt of the Audit Visit Report, and the proviso empowered the Commissioner to grant further time only on the merits of the case and only within the statutory outer limit. The assessing authority passed the assessment order after the six-month period had expired and before the Commissioner's order granting extension. The later extension was therefore ex post facto. Such a time-barred order could not be revived by a subsequent administrative extension, particularly when the statutory discretion under the proviso required prior and meaningful application of mind to the merits of the case. Section 42(7) reinforced the time-bound nature of the scheme.

Conclusion: The assessment order was invalid as time-barred, and the subsequent extension could not validate it.

Ratio Decidendi: Where a statute prescribes a mandatory period for completion of assessment and permits extension only within the statutory framework, a limitation period that has already expired cannot be revived by a later ex post facto extension.

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