M/S Kamakhya Plastics (P) Ltd vs The State Of Assam & 4 Ors on 17 March, 2011
In the present matter, the show cause notice for re-assessment was issued
after eight years of the concerned Assessment but the Revenue justifies the
exercise on the authority of the pronouncement in Kamakhya Plastics (P) Ltd.
(supra). But the High Court while permitting the State to recover tax which escaped
assessment, through retrospective application of the concessional rate notification
of 03.01.2003, did not simultaneously allow the State to exercise their taxing power
in situations, where the right to recovery stood extinguished by operation of law.
Hence it is clear that the verdict relied on by the respondent counsel can't be
applied blindly to every situation of tax escapement.