Abdul Razak T vs. The State Tax Officer
Held
The Court, relying on previous judgments of the Single Judge and Division Bench, held that the amendment to Section 25 of the KVAT Act by the Kerala Finance Act 2018 was unconstitutional. Consequently, the power to reopen assessments for AY 2011-12 expired on 31.03.2018, rendering the notice dated 16.04.2018 and the assessment order illegal and ultra vires.
Facts
The petitioner challenged an assessment order for AY 2011-12 under the Kerala Valued Added Tax Act, issued based on a reopening notice dated 16.04.2018. The core contention was that the notice and subsequent assessment were time-barred, as the State Legislature lacked the competence to amend the KVAT Act to extend the limitation period after the 101st Constitutional Amendment and the repeal of the KVAT Act.
Key Issues
The key legal issue was whether the State Legislature had the legislative competence to amend Section 25 of the Kerala Valued Added Tax Act through the Kerala Finance Act 2018, thereby extending the period of limitation for reopening assessments, after the 101st Constitutional Amendment Act 2016 and the repeal of the KVAT Act.
Sections Cited
Section 174
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH MONDAY, THE 21ST DAY OF AUGUST 2023 / 30TH SRAVANA, 1945 WP(C) NO. 22620 OF 2019 PETITIONER/S:
ABDUL RAZAK T, AGED 57 YEARS(PROPRIETOR), M/S. BROTHERS METALS, MARKET ROAD, KALPETTA-673 121. BY ADVS.P.N.DAMODARAN NAMBOODIRISHRI. HRITHWIK D. NAMBOOTHIRI RESPONDENT/S: 1 THE STATE TAX OFFICERSTATE GOODS AND STATE TAX DEPARTMENT, MAIN ROAD, KALPETTA-673 121. 2 THE ASSISTANT COMMISSIONERSTATE GST DEPARTMENT, KALPETTA-673121. 3 STATE OF KERALA REPRESENTED BY SECRETARY (TAXES), SECRETARIAT, THIRUVANANTHAPURAM-695 001. BY RASMITHA RAMACHANDRAN, GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.08.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P.(C) No.22620/2019
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J U D G M E N T
Heard Mr Hrithwik D Namboothiri, learned Counsel for the petitioner and Ms Rasmitha Ramachandran, learned Government Pleader for the respondents.
The present writ petition under Article 226 of the Constitution of India has been filed challenging Ext.P5 assessment order dated 28.03.2019 passed by t
The judgment continues below.
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