Can Reassement in KVAT be made to rectify the mistakes in original return after 3 years

prabhakar sb (Querist) 04 November 2010 This query is : Resolved
Dear Hon'bel Experts,

We have filed monthly returns in Karanataka VAT 100 wherein mistakes have been crept while declaring the turnover.They are:
1. Uasge of Input Tax suffered goods have not been properly classified in the returns even though a good amount of clear records are available at each level of manufactuiring point and hence, resulted in short set off of Input Tax paid against Output Tax while applying partial method of rebating provisions under KVAT Act.

2. Traded Turnover has also been clubbed with manufactured turover while calculating partial reabating of Input Tax.

3. Turnover & Input Tax of Stores & Consumables have been leftout while arriving at Net Out Tax payable as well as while claculating eligible input tax on partial rebating maethod.

The querry is:
1. Can the Assessing Authority be empowered to rectify the mistake on the basis of revised returns filed by the assessee after 3 years from the date of filing the returns under the Karnataka VAT Act, 2003.
2. Can Giridharalal Parasmal V/s. The State of Mysore - Feb 24, 1967 KLJ Vol XX 1967 - High Court of Mysore at Bangalore case will give remedy in the present VAT regime.

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R.Ramachandran (Expert) 04 November 2010
In terms of Section 35(4) of KVAT Act, 2003, if any dealer having furnished a return, discovers any omission or incorrect statement therein, has to furnish a revised return WITHIN SIX MONTHS from theend of the relevant tax period.

According to Rule 37 of KVAT Rules, 2005, there are only two tax periods viz., 'quarter' and 'monthly'.

Thus, the Assessee cannot file a revised return beyond the period prescribed under law.

Thereore, the question of the assessee filing a revised return after 3 years does not arise at all. Consequently, the further queries posed by does not arise.