Limitation under VAT law requires a finding of willful suppression before the extended period can apply.

An assessment made under the Andhra Pradesh Value Added Tax Act was held time-barred because the authority invoked the extended limitation period without recording any foundational finding of willful suppression or willful evasion. In the absence of such a finding, the four-year limitation under Section 21(4) applied, and the assessment issued after that period was beyond time. As the assessment was non est, the consequential penalty notice and attachment proceedings could not survive.

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Issues: Whether the assessment order dated 24.08.2021 was barred by limitation under Section 21(4) of the Andhra Pradesh Value Added Tax Act, 2005, or whether the longer period under Section 21(5) applied on account of willful suppression of facts and willful evasion of tax.

Analysis: The assessment order proceeded on a best judgment basis and did not record any finding of suppression of facts, much less willful suppression leading to willful evasion of tax. In the absence of such a foundational finding, the extended period under Section 21(5) could not be invoked. The applicable limitation remained four years under Section 21(4), and the assessment made after expiry of that period was beyond time.

Conclusion: The assessment order was barred by limitation and non est, and the consequential penalty notice and attachment proceedings could not survive.

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