Relief to Bhima Jewels, Limitation Act Applicable on Proceedings u/s 25A of KVAT Act: Kerala HC [Read Order]

Bhima Jewels Pvt. Ltd,the petitioner is a private limited company and is an assessee under the provisions of Kerala Value Added Tax Act. This writ petition is filed by the petitioner, challenging order passed by the respondent under Section 25A of Kerala Value Added Tax Act, pertaining to the assessment year 2012-13.

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The specific case of the petitioner is that, as far as the assessment pertaining to the said assessment year is concerned, it is already time barred and the same cannot be reopened by invoking the powers under Section 25A. It was pointed out that, the notice based on which proceedings under Section 25A were initiated was issued on 23.09.2024, which is beyond the time prescribed. Even though the said contention was specifically raised before the respondent, it was rejected and order was passed. It is pointed out that, the issue raised by the petitioner is covered in their favour as per judgment rendered by the Court in Joy Alukkas (India) Ltd. v. State of Kerala.

A single bench of Justice Ziyad Rahman A A observed that, even in respect of proceedings under Section 25A of Kerala Value Added Tax Act the limitation prescribed under the Act would be applicable. Evidently, since the assessment year pertaining to which the proceedings are initiated is 2012 -13, by the time notice was issued, the statutory period of limitation had already expired.

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In such circumstances, in the light of the principles laid down by the Court in judgment, an interference is required, as the proceedings which culminated in order are not legally sustainable. The court quashed the orders holding that the proceedings initiated therefrom are time-barred.

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