Page 81 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] K. SASILAL v. FAST TRACK ASSESSMENT TEAM, SGST DEPTT., ALAPPUZHA 327
[Judgment]. - Petitioner in the writ petition is aggrieved by the proceed-
ings initiated by the 1st respondent under the erstwhile Kerala General Sales Tax
Act (KGST Act) for the period 2004-2005. As per the averments, the petitioner
filed true and correct returns and paid tax and other dues for the assessment year
and continuing business on migration to the GST regime with effect from
1-7-2017.
2. The petitioner was served with a notice dated 20-11-2019 for re-
assessment of the proceedings under Section 17D of the Kerala General Sales Tax
Act, 1963 (hereinafter referred to as the ‘Act, 1963’) pertaining to method of fast
track completion of assessment, noticing the escaped turnover of Rs. 17,81,824/-
based upon certain observation of the order. The aforementioned notice also re-
flected in the sensor audit dated 28-11-2019 of the 3rd respondent. Vide Ext.P3
dated 6-12-2019, request was submitted to the first respondent to furnish the cop-
ies of audit objection and sanction order. But, without providing the documents
as sought for, issued another notice under Section 17D of the Act, 1963 dated
13-1-2020 evident from Ext.P4.
3. Learned Counsel appearing on behalf of the petitioner submitted
that as per Section 17D, the assessment completed shall not be reopened unless
there is a fresh receipt of materials pertaining to tax evasion, and the outer time-
limit as provided under Section 19 of the assessment of sale turnover would ap-
ply, which prescribed the period of five years from the expiry of the year to
which the tax relates and not beyond. Ext.P4 proceedings having been initiated
beyond the prescribed period of 5 years, the same cannot stand the test applica-
bility of Section 19 of the Act, 1963, which has already been appreciated and no-
ticed in Philips India Ltd. v. Assistant Commissioner, (2016) 96 VST 229. The outer
time-limit for assessment under Section 17(3) of the Act, 1963 for assessment year
2004-05 expired on 31-3-2010 shall be completed on 31-3-2011. The outer limit as
per the amendment made to Section 17 was only after 31-3-2014, whereas in the
instant case more than 14 years have elapsed.
4. This Court vide order dated 6-3-2020 called upon counsel for the re-
spondents to take instruction and in the meantime operation of Ext.P7 was or-
dered to be kept in abeyance.
5. Dr. Thushara James, the Learned Government Pleader submits that
once Section 17D of the Act, 1963 do not envisage any period of limitation, the
argument of Sri. K.N. Sreekumaran that the applicability of Section 19 of the Act,
1963 would not apply and impugned order noticing the escaped turnover cannot
be said to be erroneous or barred by law of limitation.
6. I have heard Learned Counsel for the petitioner and also the Learned
Government Pleader.
Section 17D of the KGST ACT reads as follows :-
17D. Fast Track method of completion of Assessment. - (1) Notwith-
standing anything contained in any other law for the time being in force or
any other provisions of this Act all assessment pending under the Act as on
the 1st day of April, 2007 shall, subject to the provisions of sub-section (2),
be completed under the fast track method.
(2) The assessment under sub-section (1) shall be completed in the follow-
ing manner, namely :-

GST LAW TIMES  21st May 2020  81