Limitation under KVAT assessment law cannot be revived by a later proviso after the original period expires.

Assessment proceedings under the Kerala Value Added Tax Act were initiated after the original five-year limitation period for Section 25(1) had expired. The later amendment extending the initiation period to six years, including the third proviso inserted from 01.04.2017, could not validate proceedings already time-barred when commenced. The assessment was therefore held unsustainable on limitation, and the challenge succeeded.

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Issues: Whether the assessment proceedings for the assessment year 2011-12, initiated under Section 25(1) of the Kerala Value Added Tax Act, 2003, were barred by limitation and whether they could be saved by the third proviso introduced with effect from 01.04.2017.

Analysis: The notices were issued beyond the original five-year period prescribed for initiation of assessment. The statute was later amended to extend the period to six years, but the impugned assessments had already been initiated beyond the originally available limitation. In view of the amendment and the principles laid down by the Apex Court and followed by the Division Bench, the assessment could not be sustained by resort to the third proviso introduced from 01.04.2017.

Conclusion: The assessment proceedings were time-barred and the challenge succeeded.

Ratio Decidendi: An assessment initiated beyond the limitation period originally prescribed under Section 25(1) of the Kerala Value Added Tax Act, 2003 cannot be validated by a later proviso introduced after the expiry of that period.

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