Case Note & Summary
The appellant-assessee, M/s. Shree Sheele Pvt. Ltd., was subjected to penalty under Section 5A(3)(i) of the Karnataka Sales Tax Act, 1957 by an order dated 26.09.2005. The assessee appealed, and the Joint Commissioner of Commercial Taxes allowed the appeal on 18.03.2006, setting aside the penalty. Subsequently, the Additional Commissioner of Commercial Taxes issued a show cause notice on 02.09.2009 (served on 19.09.2009) proposing to revise the appellate order under Section 22A of the Act. The assessee filed a reply on 20.03.2010, received on 08.04.2010. The Additional Commissioner passed the revisional order on 13.12.2011, setting aside the appellate order and directing the Assessing Officer to issue a revised demand notice. The assessee challenged this revisional order before the High Court. The High Court examined the limitation period under Section 22A, which provides a period of four years from the date of the order sought to be revised. The order sought to be revised was dated 18.03.2006, so the limitation expired on 17.03.2010. The revisional order was passed on 13.12.2011, which was beyond the limitation period. The court noted that the revisional order was ante-dated to appear as if it was passed within limitation, but the actual date of passing was 13.12.2011. The court held that the revisional order was barred by limitation and liable to be set aside. The appeals were allowed, and the revisional order was quashed.
Headnote
A) Limitation - Revisional Powers - Section 22A Karnataka Sales Tax Act, 1957 - Ante-dating of Order - The Additional Commissioner issued a show cause notice on 02.09.2009 for revising an order dated 18.03.2006. The limitation period of four years from the date of the order sought to be revised expired on 17.03.2010. The revisional order was passed on 13.12.2011, which was beyond the limitation period. The court found that the order was ante-dated to circumvent limitation, and held that the revisional order was barred by limitation and liable to be set aside. (Paras 2-5) B) Limitation - Computation - Section 22A Karnataka Sales Tax Act, 1957 - The period of limitation of four years for exercising revisional powers under Section 22A is to be computed from the date of the order sought to be revised. In this case, the order dated 18.03.2006 could be revised only up to 17.03.2010. The revisional order passed on 13.12.2011 was clearly beyond the limitation period. (Paras 4-5)
Issue of Consideration
Whether the revisional order passed under Section 22A of the Karnataka Sales Tax Act, 1957 was within the period of limitation, and whether the order was ante-dated to overcome the limitation.
Final Decision
The High Court allowed the appeals, set aside the revisional order dated 13.12.2011 passed by the Additional Commissioner of Commercial Taxes, and quashed the same.
Law Points
- Limitation period under Section 22A of the Karnataka Sales Tax Act
- 1957 is mandatory
- Ante-dating of order to circumvent limitation is illegal
- Revisional authority cannot revise order beyond limitation period
