TaxTMI 
TaxTMI 
2019 (12) TMI 1700
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....e initiating reassessment proceeding against the petitioner-Company for the Assessment Year 2006-07 is barred by limitation, and thus, void ab-initio"? 2. The brief facts of the case as would be evident from the writ application is that the petitioner is a registered dealer under the provisions of the Jharkhand Value Added Tax Act, 2005 [hereinafter referred to as "JVAT Act, 2005"], and is primarily engaged in the business of manufacturing of sponge Iron and M.S. Billets. During the relevant period under consideration i.e. Assessment Year 2006-07, the petitioner submitted all its return under the provisions of the JVAT Act, 2005 and duly discharged its admitted tax liability to the Commercial Taxes Department and even subsequently Assess....
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....e tax is assessable. It has been submitted by the petitioner that the dispute relates to the Assessment Year 2006-07 and the period of five years as stipulated under Section- 40(2) of the JVAT Act would commence from 31.3.2007 and would end by 31.03.2012 and thus, it has been contended that issuance of notice beyond the period prescribed for initiating reassessment proceeding is time barred and void ab-initio. 5. Per contra, Mr. Atanu Banjerjee, counsel appearing for respondent-State of Jharkhand has raised preliminary objection regarding maintainability of the writ petition and has stated that the writ petitioner has challenged the show cause notice which is not maintainable and the petitioner should participate in the reassessment proc....
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....ontains the provisions for initiation of reassessment proceeding in case of "Turnover escaping Assessment". The said provisions read as under:- 40. Turnover escaping Assessment-(1) Where after a dealer is assessed under Section 35 or Section 36 for any year or part thereof, and the Prescribed Authority, upon information or otherwise has reason to believe that the whole or any part of the turnover of the dealer in respect of any period has a) escaped assessment; or b) been under assessed; or c) been assessed at a rate lower than the rate on which it is assessable; or d) been wrongly allowed any deduction therefrom; or e) been wrongly allowed any credit therein; the prescribed aut....
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....after the expiry of five years from the end of the year in respect of which or part of which the tax is assessable. 9. A bare reading of the said provisions clearly reveals that the period of limitation of 5 years have been prescribed under the Act and a plain reading of the said provision would reveal that the period of limitation prescribed under the Act does not demarcate between the situations where the tax is under assessed or escaped assessment for any reason whatsoever, and the limitation is un-extendable. 10. It is trite law that taxing statute is to be strictly construed and the subject is not to be taxed without clear words for that purpose contained in the taxing statute. Reference in this regard may be made to Constitution....
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....ok merely at what is clearly said. There is no room for any intendment. There is no equity about a tax. There is no presumption as to a tax. Nothing is to be read in, nothing is to be implied. One can only look fairly at the language used.' 11. In view of aforesaid accepted principle of law regarding strict interpretation of taxing statute, we are unable to accept the arguments advanced by the counsel for the respondents that the period of limitation prescribed under the Act for initiation of reassessment proceeding would not be applicable in the event reassessment proceedings are sought to be initiated due to any fraud allegedly having been committed by a dealer. If the intention of the legislature would have been to provide for additio....
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....or a period of five years only. For the sake of ready reference, Rule-38(3) of the JVAT Rules, 2005 is quoted hereunder:- 38. Records to be maintained for VAT ........................ .......................... (3) All records specified in this rule shall be retained and made available for inspections / audit / verifications for a period of five years, after the end of the year. 13. Thus if the arguments of respondent-State is accepted that reassessment proceeding can be initiated at any time and even beyond the period of five years as stipulated under Section- 40(2) of the JVAT Act, 2005, Rule- 38 (3) of the JVAT Rules, 2005 would be rendered Otiose and Vat dealer who is not required to maintain recor....