2019 (2) TMI 928

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....MENT Vinod Chandran, J: The writ petitions are filed against the assessments completed and notices issued for assessment under the Central Sales Tax Act, 1956 [for brevity "CST Act"] read with the provisions of the Central Sales Tax (Kerala) Rules, 1957 [for brevity "CST (K) Rules"]. 2. The sparse details required for consideration of the writ petitions are the specific dates on which notices for assessments were issued for the specific assessment years. Both the writ petitions deal with assessment years 2005-06 and 2006-07. In W.P(C) No.12126 of 2012, a notice was issued on 26.12.2011 for the assessment year 2005-06 and on 05.01.2012 for the assessment year 2006-07. In W.P. (C) No.7269 of 2012, notice was issued on 29.02.2012 for ....

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....essment alone is contemplated by the Department and it has to be carried out inter-alia under Section 25 of the KVAT Act. The period provided for initiating such proceedings under section 25 is five years under the KVAT Act. However, sub-section (2) of Section 9 of the CST Act makes application of the provisions under the general sales tax law, to be subject to the provisions of the CST Act and the Rules framed thereunder. Hence, if there is any provision in the CST Act or prescription in the rules made thereunder; that would prevail for the purposes of proceedings under the CST Act. For re-opening of assessments under the CST Act, the CST (K) Rules, by Rule 6(7), specifically provides a four year period for re-opening of assessment, which ....

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.... of Sales Tax, Indore v. Malwa Vanaspati & Chemical Company Ltd. [AIR 1968 SC 894]. 6. Parisons Food (P) Ltd. considered the issue both under the KGST Act Act and KVAT Act. Even after the KVAT Act came into force, it was found that the assessment under the CST Act has to be completed under Rule 6(5) and there being no specific limitation provided, there is no restriction insofar as the initiation of proceedings for completion of assessments as per the Rules. However, Fijo Joseph took a different view insofar as the period of limitation for initiation; which in any event had to be within a reasonable time. On the question of reasonableness, the Division Bench relied on State of Punjab v. Bhatinda District C o -operative Milk Producers Ind....

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....ngle return is filed disclosing both inter-State and intra-State turnover, by the dealers registered both under the KVAT Act and the CST Act, for the component of inter-State turnover there could be no completion of assessment under Section 21 of the KVAT Act. It has to necessarily concede to Rule 6(5), of the CST (K) Rules; which speaks of a regular assessment being necessitated. When such regular assessment is necessitated, and there is no limitation provided, necessarily one has to look at the scheme of the general sales tax law which provides for a period of five years for initiating the proceedings. 8. The argument is that this would create an anomaly insofar as permitting assessments to be initiated within five years while re-asses....

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.... the differential treatment; negativing the claim of invidious and irrational discrimination. In Malwa Vanaspati & Chemical Company Ltd. also the sales-tax enactment provided for a limitation with respect to assessment of escaped turnover while the regular assessments were permissible to be completed without limitation; which provisions were held to be not vitiating either. Regular assessment is a proceeding which commences with the filing of a return and any notice issued is also a continuation of the proceeding was the finding. 10. Here the provisions are slightly different in so far as they provide for assessment and re-assessment; the later of which could be carried out even in the case of a completed assessment, if it resulted in th....