TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Court declares extension of VAT assessment period unconstitutional, sets aside impugned notice, allows writ petition, closes related petitions.</h1> <h3>M/s. Shree Ganesh Jewels Versus Govt. of Telangana</h3> The Court declared the extension of the assessment period for Value Added Tax (VAT) to six years under Act 26 of 2017 as unconstitutional. The Notice of ... Legality and validity of the Notice of Assessment of Value Added Tax (VAT) - extension of period of assessment to six years by the Telangana Value Added Tax (Second Amendment) Act, 2017 - HELD THAT:- This enactment was struck down by this Court as being unconstitutional in M/S. SRI SRI ENGINEERING WORKS AND OTHERS VERSUS THE DEPUTY COMMISSIONER (CT) , BEGUMPET DIVISION, HYDERABAD, AND OTHERS. [2022 (7) TMI 420 - TELANGANA HIGH COURT] where it was held that the Second Amendment Act is unconstitutional being devoid of legislative competence. It is accordingly declared as such. Consequently, the notices issued and orders passed under Section 32 (3) of the VAT Act which have been impugned in the present batch of writ petitions are hereby set aside and quashed. From a perusal of the impugned notice dated 21.06.2023, it is found that the said notice is clearly beyond the limitation period of four years from the end of the assessment period. Evidently, respondent No.4 has invoked the extended period of limitation of six years provided by Act 26 of 2017 though not specifically mentioned in the impugned notice. When this provision has been declared unconstitutional by this Court, we are at a loss as to why respondent No.4 had issued the impugned notice based on such a provision. Writ Petition is accordingly allowed. Issues involved: Assessment of Value Added Tax (VAT) based on extended period of limitation of six years under Act 26 of 2017 declared unconstitutional.Comprehensive Details:Assessment Period Extension: The petitioner challenged the Notice of Assessment of VAT dated 21.06.2023, seeking to assess the petitioner for the period from 01.04.2016 to 31.03.2017. The period of assessment was extended to six years by Act 26 of 2017, which was later struck down by the Court as unconstitutional in a previous judgment.Unconstitutionality of Act 26 of 2017: The Court highlighted that the impugned notice dated 21.06.2023 exceeded the limitation period of four years from the end of the assessment period. Despite the unconstitutional nature of the provision allowing for a six-year assessment period, respondent No.4 issued the notice invoking this extended period, leading to its invalidation based on the Court's previous ruling.Judicial Ruling: In line with the precedent set by the Court in M/s. Sri Sri Engineering Works v. Deputy Commissioner (CT), the impugned notice dated 21.06.2023 was set aside, and the Writ Petition was allowed with no costs. Consequently, any related miscellaneous petitions were closed as a result of this decision.
TaxTMI 
TaxTMI 
