TaxTMI 
TaxTMI 
2020 (11) TMI 25
X X X X Extracts X X X X
X X X X Extracts X X X X
....dent. 2. In support of the aforementioned prayer, it is averred that petitioner is an assessee under the erstwhile Kerala Value Added Tax Act, 2003 and Central Sales Tax Act. For the assessment years 2005-06 and 2006-07, petitioner filed return under the CST, declaring inter-State sales turnover against 'C' Forms. The petitioner was surprised to receive revenue recovery notice issued by the 2nd respondent, shown to have been on the basis of some alleged arrears of sales tax. The recovery notices were purportedly based on the requisition of the first respondent assessing authority on the basis of assessment orders dated 29.3.2014 as arrears w.e.f 1.4.2005 and 1.4.2006 ie., for the assessment years 2005-06 and 2006- 07. 3. Learned c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....under Section 25(1) of 2003 Act. Section 42(3) of the Act provides that if any assessee fails to file any audited accounts referred to in sub Section 1 or annual return, annexures, statements, certificates, details of sale and purchase, the assessment for the relevant year for the purposes of Section 25 shall be treated as pending and time limit mentioned therein shall not be applicable in such cases. In support of the aforementioned contention, he relied upon the Division Bench judgment of this Court in Assistant Commissioner (Assessment) v. Grasim Industries Ltd. (2006 (1) KLT 821) and unreported judgment in Johnson Plastics v. Intelligence Officer (O.P No.8290 of 2003) dated 22.11.2007 and urges this Court for dismissal of the writ petit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in Section 25 of KVAT Act, the revenue could not re-open assessment after expiry of the limitation prescribed under Section 25. On analysis of the judgment and arguments, it was held that on account of a retrospective operation of newly introduced provision, assessee would not be in a position to adduce material to defend against an allegation of suppressed / escaped turnover. No doubt, retrospective operation of Section 42(3) would entail into reopening of assessments completed years back and assessee would not have relevant books of accounts and other records to defend the case against alleged escaped turnover. As per Rule 58(20) of KVAT Rules, assessee is required to maintain the books for a period of five years from the end of assessmen....