Limitation under KVAT reassessment law did not require completion within six years where proceedings were validly initiated in time.

Under the amended proviso to Section 25(1) of the Kerala Value Added Tax Act, reassessment proceedings validly initiated within time were not required to be completed within the same six-year period. The Court distinguished the Supreme Court ruling relied on, noting it concerned the unamended proviso and did not control the amended scheme, which also covered assessment periods expiring on 31.03.2017 with extension up to 31.03.2018. The assessment order was therefore not time-barred, and the limitation challenge failed.

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Issues: Whether the assessment order was barred by limitation under Section 25(1) of the Kerala Value Added Tax Act on the ground that the reassessment proceedings, though initiated within time, were completed after the expiry of six years.

Analysis: The dispute turned on the effect of the amended proviso to Section 25(1) of the Kerala Value Added Tax Act with effect from 01.04.2017. The Court held that the Supreme Court decision relied on by the petitioner concerned the unamended proviso and did not lay down that proceedings validly initiated under the amended provision must also be completed within the six-year period. Reading the amended proviso, including the reference to assessment periods expiring on 31.03.2017 and extension up to 31.03.2018, the Court found no basis to hold that completion of proceedings within the same six-year period was mandatory where initiation had taken place within time.

Conclusion: The assessment order was not time-barred and the challenge on limitation failed.

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