2025 (3) TMI 1530 - HC - GST

Notice under s.17D issued over 14 years after assessment year held invalid as provision repealed and replaced by VAT regime

HC held that issuance of a notice under s.17D of the KGST Act more than 14 years after the end of the relevant assessment year was unjustifiable, ... Issuance of notice u/s 17D of the KGST Act - time limitation - notice was issued more than 14 years after the end of the assessment year in question - HELD THAT:- A delay of 14 years for the issuance of notice under Section 17D, more so when the statute in question itself has been repealed in relation to the commodity in question, and the Kerala Value Added Tax Act was introduced, cannot be justified under any circumstances. There are no merit in this Writ appeal, and the same is dismissed. Writ appeal by the Revenue challenges issuance of a notice under Section 17D of the Kerala General Sales Tax Act (KGST Act) for assessment year 2004-2005; the notice was dated 20.11.2019, i.e., over 14 years after the end of that year. The Single Judge relied on precedent in Betty Sebastian v. Assistant Commissioner and concluded that, although Section 17D does not prescribe a period of limitation, an inordinate delay may render the protection under Section 17D unavailable. The Court here agreed that condoning a 14-year delay to invoke Section 17D would 'tantamount to doing violence to the language used in the statutory provision,' which contemplates 'fast track assessments,' and is inconsistent with the KGST Act's scheme. It was noted the KGST Act's maximum period for reopening assessments was four years (extendable in limited circumstances), and that the KGST regime for the commodity in question has been repealed with introduction of the Kerala Value Added Tax Act. Appeal dismissed.