1977 (10) TMI 97 - HC - VAT and Sales Tax

Summary

Issues:
- Validity of the notice proposing revision of assessment for the year 1966-67 under the Tamil Nadu General Sales Tax Act.
- Interpretation of section 16 of the Act regarding the time limit for revising assessments.
- Determining the relevant date for initiating reassessment proceedings.

Analysis:
The petitioner sought a writ of prohibition against the respondent from further proceedings based on a notice proposing to revise the assessment for the year 1966-67 under the Tamil Nadu General Sales Tax Act. The petitioner argued that the proposed revision would be time-barred as per section 16 of the Act, which allows a 5-year period for revising assessments. The crucial issue was determining the relevant date for calculating the limitation period for revising assessments. The petitioner contended that the date of service of the notice on 3rd April, 1972, should be considered, while the respondent argued that the date of issue of the notice on 30th March, 1972, was relevant.

The court analyzed section 16 of the Act, which permits the assessing authority to revise assessments within 5 years from the relevant year. Referring to precedents, the court highlighted that the initiation of proceedings for assessment of escaped turnover within the prescribed time is crucial, not the finalization of the assessment within that period. The court held that the issuance of the notice on 30th March, 1972, constituted the initiation of reassessment proceedings, not the date of service on the petitioner. Therefore, the proposed reassessment was not time-barred. The petitioner was directed to present objections before the assessing authority for consideration before the final assessment order.

As the petitioner had not submitted objections yet, the court instructed the assessing authority to review any objections filed within four weeks and proceed with the final assessment accordingly. Consequently, the writ petition was dismissed, with no costs imposed. The judgment clarified the significance of initiating reassessment proceedings within the statutory time limit and upheld the validity of the notice proposing revision of assessment under the Tamil Nadu General Sales Tax Act for the year 1966-67.