Case Note & Summary
The State of Karnataka filed revision petitions under Section 65(1) of the Karnataka Value Added Tax Act, 2003 (KVAT Act) challenging an order of the Karnataka Appellate Tribunal. The Tribunal had set aside a suo motu revisional order passed by the Joint Commissioner of Commercial Taxes under Section 63-A(3) of the KVAT Act on the ground that it was passed beyond the period of limitation. The respondent, M/s. Technocon Builders, is a civil works contractor assessed to tax under the KVAT Act. The dispute pertained to the assessment period of April, May, July, August, September, and November 2005. The assessment order was passed on 28.12.2006 and was not challenged in appeal. On 26.8.2009, the assessment record was sent by the Assessing Authority to the Joint Commissioner, who examined it and found the assessment order prejudicial to the interest of revenue. A show cause notice was issued to the assessee on 7.12.2010, and the revisional order was passed on 29.11.2011. The assessee challenged this order before the Tribunal, which held that the revisional order was barred by limitation as it was passed beyond three years from the date of the assessment order. The State argued that the limitation period should run from the date of initiation of proceedings, i.e., the date of sending the record or issuance of show cause notice. The High Court, after hearing both sides, dismissed the revision petitions, holding that the limitation period under Section 63-A(3) runs from the date of the assessment order, and since the revisional order was passed beyond three years, it was barred by limitation. The court upheld the Tribunal's order.
Headnote
A) Limitation - Suo Motu Revision - Section 63-A(3) KVAT Act - Period of Limitation - The issue was whether the revisional order passed by the Joint Commissioner under Section 63-A(3) of the KVAT Act was beyond the period of limitation. The court held that the limitation period of three years runs from the date of the assessment order, not from the date of initiation of proceedings. Since the assessment order was passed on 28.12.2006 and the revisional order was passed on 29.11.2011, it was beyond the prescribed period. The Tribunal's order setting aside the revisional order was upheld. (Paras 1-5) B) Limitation - Initiation of Proceedings - Section 63-A(3) KVAT Act - Commencement of Limitation - The court clarified that the limitation period for passing the revisional order commences from the date of the assessment order, not from the date of sending the record or issuance of show cause notice. The initiation of proceedings does not extend the limitation period. (Paras 3-5)
Issue of Consideration
Whether the suo motu revisional order passed under Section 63-A(3) of the Karnataka Value Added Tax Act, 2003 was barred by limitation, and whether the period of limitation runs from the date of the assessment order or from the date of initiation of proceedings.
Final Decision
The revision petitions are dismissed. The order of the Karnataka Appellate Tribunal dated 05.06.2013 is upheld.
Law Points
- Limitation for suo motu revision under Section 63-A(3) of KVAT Act
- 2003
- Period of limitation runs from date of assessment order
- Revisional authority must pass order within three years
- Initiation of proceedings does not extend limitation
