Unconstitutional limitation extension cannot validate a time-barred VAT assessment notice issued after expiry of the statutory period.

An assessment notice issued after expiry of the normal four-year limitation for the relevant VAT period could not be sustained by relying on the six-year extension introduced by the Telangana Value Added Tax (Second Amendment) Act, 2017, because that amendment had already been declared unconstitutional for want of legislative competence. With the statutory foundation removed, the extended limitation could not revive or validate a time-barred notice. The VAT assessment notice was therefore held invalid and quashed as barred by limitation.

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Issues: Whether the assessment notice issued beyond four years could be sustained by invoking the extended six-year limitation under the Telangana Value Added Tax (Second Amendment) Act, 2017, after that enactment had been declared unconstitutional.

Analysis: The impugned notice related to the assessment period 01.04.2016 to 31.03.2017 and was issued after the normal four-year limitation had expired. The notice was sought to be justified with reference to the extended six-year period introduced by the Second Amendment Act. The earlier judgment of the Court had already held that the Second Amendment Act was unconstitutional for want of legislative competence. Once that legislative foundation was removed, the extended limitation could not be relied upon to revive or support a time-barred assessment notice.

Conclusion: The notice could not be sustained and was held invalid.

Final Conclusion: The writ petition succeeded, and the impugned VAT assessment notice was quashed as time-barred and unsupported by a valid legislative provision.

Ratio Decidendi: An assessment notice issued beyond the statutory limitation cannot be validated by an extended limitation provision that has been declared unconstitutional and void for lack of legislative competence.

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