State of Kerala v. M/S.Chakolas Habitat Bay Side
Case brief
What is this about?
The Kerala High Court delivered a common judgment dismissing multiple writ appeals. The court held that the amendment to the Kerala Value Added Tax Act (KVAT) extending the limitation period from five to six years was prospective and did not apply to relevant assessment years. Crucially, the court ruled that the Kerala State Legislature lacked the legislative competence to amend the KVAT Act through the Finance Act, 2018, as Entry 54 of List II had been repealed by the Constitution (101st Amendment) Act, 2016, and the subsequent GST savings clause could not validate such ultra vires legislation.
What did the court decide?
The appeals were dismissed as they failed on grounds of lack of legislative competence and prospective application of the amendment. The assessment notices relying on the 2018 amendment were held without jurisdiction.