1962 (3) TMI 70 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Applicability of limitation period for reassessment under the Madras General Sales Tax Act vs. Andhra Pradesh General Sales Tax Act.
2. Retrospective effect of the Andhra Pradesh General Sales Tax Act, 1957 and its amendments.
3. Exclusion of time due to stay order in computing the limitation period.

Detailed Analysis:

1. Applicability of Limitation Period for Reassessment:
The primary issue was whether the reassessment for the year 1953-54 was governed by the Madras General Sales Tax Act or the Andhra Pradesh General Sales Tax Act. The original assessment was completed on 12th March 1955, and a notice for reassessment was issued on 8th March 1957. According to the Madras General Sales Tax Rules, the reassessment should have been completed within three years, i.e., by 31st March 1957. However, the Andhra Pradesh General Sales Tax Act, which came into force on 15th June 1957, extended this period to four years. The court had to determine which limitation period applied.

2. Retrospective Effect of the Andhra Pradesh General Sales Tax Act, 1957 and its Amendments:
The petitioner argued that the Andhra Pradesh General Sales Tax Act, as amended in 1958, was not given retrospective effect. Section 14(4) of the Andhra Pradesh General Sales Tax Act allowed reassessment within four years, and subsection (5) excluded the period during which a stay order was in force. The petitioner contended that these provisions did not apply retrospectively to the assessment year 1953-54. However, the court noted that procedural laws, including those related to limitation, generally have retrospective effect unless explicitly stated otherwise. The court also referenced previous judgments to support this view.

3. Exclusion of Time Due to Stay Order in Computing the Limitation Period:
The court examined whether the period during which the stay order was in force should be excluded from the limitation period. The stay order was in effect from 18th March 1957 to 18th February 1959, a total of one year and eleven months. By excluding this period, the reassessment could be made until 3rd March 1960. The court held that the principle of "actus curiae neminem gravabit" (an act of the court shall prejudice no one) applied, and thus the period of the stay order should be excluded. This meant the reassessment completed on 31st July 1959 was within the permissible period.

Conclusion:
The court concluded that the reassessment was governed by the Andhra Pradesh General Sales Tax Act, which allowed a four-year period for reassessment. The period during which the stay order was in force should be excluded in computing the limitation period. Consequently, the reassessment made on 31st July 1959 was within time. The tax revision case was dismissed, and the order of the Sales Tax Appellate Tribunal was upheld, with the petitioner ordered to pay costs.

Key Points:
- The reassessment was initially governed by the Madras General Sales Tax Act but later fell under the Andhra Pradesh General Sales Tax Act due to procedural law principles.
- The Andhra Pradesh General Sales Tax Act and its amendments were applied retrospectively.
- The period during which the stay order was in force was excluded in computing the limitation period, making the reassessment timely.

Final Judgment:
The tax revision case was dismissed with costs, affirming the revised assessment as not barred by limitation.