Page 84 - GSTL_21st May 2020_Vol 36_Part 3

330 GST LAW TIMES [ Vol. 36
(2) In making as assessment under sub-section (1), the assessing authority
may, if it is satisfied that the escape from assessment is due to wilful non-
disclosure of assessable turnover by the dealer, direct the dealer to pay, in
addition to the tax assessed under sub-section (1) a penalty as provided in
section 45A :
Provided that no such penalty shall be imposed unless the dealer affected
has had a reasonable opportunity of showing cause against such imposi-
tion.
Explanation. - Notwithstanding anything contained in the Indian Evidence
Act, 1872, the burden of proving that the escape from assessment was not
due to willful non-disclosure of assessable turnover by the dealer shall be
on the dealer.
(3) The powers under sub-section (1) may be exercised by the assessing
authority even though the original order of assessment, if any, passed in the
matter, has been the subject matter of an appeal or revision.
(4) In computing the period of limitation for the purpose of this section,
the time during which the proceedings for assessment remained stayed un-
der the orders of a Civil court or other competent authority shall be exclud-
ed.”
7. On perusal of the aforementioned provisions, particularly Section 19
of the Act, 1963 empowers the assessing authority may, at any time within five
years from the expiry of the year to which the tax relates, proceed to determine
the best of its judgment in respect of the turnover alleged to have escaped as-
sessment to tax.
8. There was an amendment in Section 17 whereby the assessment re-
lating to year up to and including 2004-05 running as on 31st March, 2010 or to
be completed on or before 31-3-2011. The said proviso reads as follows :-
“Provided also that the assessment relating to the years up to and including
the year 2004-05 pending as on 31st March, 2010 shall be completed on or
before the 31st day of March, 2011”
9. However, in the instant case the Ext.P2 notice was issued on 20-11-
2019 followed by an assessment order dated 14-12-2009 and Ext.P4 notice, Ext.P7
order commanding the petitioner to pay the penalty and interest under the KGST
Act, 1963. There is no justification for this department or a material placed on
record as per the provision of Section 17D, I am of the firm opinion that in the
absence of any statutory period referred to Section 17D escaped assessment way
of fast track assessment can be taken almost 14 years later. The reasonable period
can be extended up to the period referred to other provisions regarding the es-
caped assessment under Section 19.
10. Even from perusal of the assessment order and the notice there is
no reference to the additional material forming an opinion to undertake the fast
track assessment.
11. For the reason aforementioned, I am of the view that the order im-
pugned in Ext.P1 and demand in Ext.P7 are not sustainable. Accordingly the
Ext.P1 assessment order 14-12-2009 and Ext.P7 demand notice dated 10-2-2020
are quashed. The writ petition is allowed.

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GST LAW TIMES  21st May 2020  84