Extended limitation for reassessment creates no vested right against notice issued within the new statutory period.

The Kerala Value Added Tax amendment extending the reassessment notice period from five years to six years with effect from 01.04.2017 applied to notices issued within the enlarged period, even where the earlier five-year period had already expired. The court held that dealers acquired no vested or accrued right to resist reassessment merely because the pre-amendment limitation would otherwise have run out, and rejected the argument that the amendment operated only prospectively to preserve the earlier bar. The reassessment notices were therefore valid and within jurisdiction, the challenge failed, and the revenue appeals succeeded, leaving the respondents to pursue statutory appeals before the Appellate Authority.

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Issues: Whether the amendment enhancing the period for issuance of reassessment notice under the Kerala Value Added Tax regime applied to notices issued after 01.04.2017 for earlier assessment years, and whether dealers had any vested or accrued right to resist reassessment once the enlarged limitation period came into force.

Analysis: The amendment to Section 25(1) enlarged the reassessment period from five years to six years with effect from 01.04.2017. The notices in the batch cases were issued within the enlarged period, though after the earlier five-year period had expired in some cases. On that basis, the dealers had no vested or accrued right to claim immunity from reassessment merely because the pre-amendment limitation would otherwise have expired. The reasoning that the amendment operated only prospectively so as to preserve the earlier limitation in favour of the dealers was rejected.

Conclusion: The reassessment notices were held to be valid and within jurisdiction, and the challenge to them failed.

Final Conclusion: The common judgments under appeal were set aside and the revenue appeals succeeded, while the respondents were left to pursue statutory appeals before the Appellate Authority.

Ratio Decidendi: When a statute validly extends the limitation period for reassessment before the original period has expired, no vested or accrued right arises in favour of the dealer to defeat a notice issued within the extended period.

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