Deputy Commissioner v. Krishna Metals
Case brief
What is this about?
The High Court of Kerala dismissed numerous Writ Appeals challenging the validity of amendments to the Kerala VAT/KVAT Act regarding limitation periods and legislative competence post-GST. The Court held that the amendment to the KVAT Act by Finance Act 5/2018 was unconstitutional as the State lacked legislative power over such matters after the 101st Constitutional Amendment. However, regarding the retrospective operation of the 2017 amendment, the Court confirmed the view that the change from 'five years' to 'six years' was prospective, leaving Assessments like AY 2010-11 time-barred.
What did the court decide?
The appeals are dismissed. The amendment to Section 25(1) of the KVAT Act by Finance Act 11/2017 is confirmed as prospective, and the assessment for Assessment Year 2010-11 is excluded from reassessment.