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of <h1>Limitation Period for Revising Assessments Under TN VAT Act Starts October 31; Orders Beyond Limit Quashed</h1> <h3>M/s. KAG India Pvt Ltd. Versus The Assistant Commissioner (St) Tambaram Assessment Circle, Chennai</h3> M/s. KAG India Pvt Ltd. Versus The Assistant Commissioner (St) Tambaram Assessment Circle, Chennai - TMI Issues Involved:1. Point of initiation of re-assessment/revision of assessment under Section 27 of the Tamil Nadu Value Added Tax Act, 2006.2. Bar of limitation for passing orders under Section 27.3. Validity of orders passed beyond the period of limitation.Summary:1. Point of Initiation of Re-assessment/Revision of Assessment:The common question in these cases is the point of initiation of re-assessment/revision of assessment under Section 27 of the Tamil Nadu Value Added Tax Act, 2006. The matters are grouped together and disposed of via this common order. The relevant dates and events are tabulated to aid in setting the context for deciding the legal issue.2. Bar of Limitation:In W.P.No.28896 of 2019, the challenge is to an order dated 18.03.2019 for the period 2011-12. The primary ground is the bar of limitation. The petitioner contends that the impugned order under Section 27 should have been passed within six years from the date of deemed assessment, i.e., by 31.10.2018. The first notice for revision of assessment was issued on 24.12.2018, beyond the six-year period, making the impugned order liable to be quashed. The respondent argues that the period of six years should run from the date of the regular assessment order, i.e., 25.03.2014.3. Validity of Orders Passed Beyond Limitation:The provisions of Section 27 provide for a six-year period from the date of assessment for revision. The question is whether this period commences from the date of deemed assessment under Section 22(2) or from a regular assessment under Section 22(4). The petitioners argue for the former, while the revenue contends the latter. The court addresses that unlimited revisions of assessment availing the benefit of limitation under Section 27 would result in no finality of assessment. Every new round of re-assessment must relate to an issue not addressed in prior assessments.4. Relevant Case Laws:The petitioners rely on orders in Indian Commerce Industries Co. Pvt Ltd. and Tvl. Pupa Lineraa, where the court held that limitation for revision commences from the date of deemed assessment. The revenue cites decisions from the Supreme Court and High Courts, arguing that limitation should commence from the date of reassessment.5. Court's Findings:The court concludes that:- Commencement of limitation for revision of assessment is 31st October of the succeeding period.- Limitation for passing an order under Section 22(4) is subject to the limitation under Section 22(2).- Once an order of assessment is deemed to have been passed under Section 22(2), passing an order under Section 22(4) thereafter does not arise.6. Final Order:The court disposes of the writ petitions in terms of this order, directing consequential orders based on the conclusions. Penalties levied under the impugned orders are canceled. Connected miscellaneous petitions are closed with no order as to costs.
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