Limitation under VAT law barred revival of a stale reassessment notice; later proceedings could not extend the statutory period.

A show cause notice issued in 2024 for assessment year 2009-2010 was held barred by limitation under section 27 of the Tamil Nadu Value Added Tax Act, 2006, because proceedings had to be completed within six years from the completed assessment dated 15.03.2011. Later connected assessment proceedings, appeals, and challenges did not extend or revive that statutory period. The Court further held that the record-preservation obligation under section 64(2)(b) read with rule 6(11) could not justify continuation of a stale and time-barred proceeding. The notice was quashed in favour of the assessee.

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Issues: Whether the impugned show cause notice issued in 2024 for the assessment year 2009-2010 was liable to be quashed as time-barred and incapable of reviving a stale proceeding under section 27 of the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The dispute arose from an audit conducted in 2009 and an earlier show cause notice issued in 2014 for escaped assessment. The assessment for 2009-2010 had been completed on 15.03.2011, and the Court held that the respondent was required to complete proceedings under section 27 within six years, which would have expired on 14.03.2017. The later events relating to connected assessment years, appeals, and the pending challenge to those orders did not extend or revive the statutory limitation. The Court also held that the obligation to maintain records under section 64(2)(b) of the Tamil Nadu Value Added Tax Act, 2006 read with rule 6(11) of the Tamil Nadu Value Added Tax Rules, 2007 could not justify continuation of an otherwise time-barred proceeding.

Conclusion: The impugned show cause notice was held to be barred by limitation and liable to be quashed, and the writ petition was allowed in favour of the assessee.

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