1981 (11) TMI 167 - HC - VAT and Sales Tax

Summary

Issues:
- Impugning a notice issued by the Assessing Authority beyond the prescribed time limit under section 11(4) of the Punjab General Sales Tax Act, 1948.

Analysis:
The petitioner challenged a notice issued by the Assessing Authority, arguing that it was time-barred under section 11(4) of the Punjab General Sales Tax Act, 1948. The notice in question was issued on 16th June, 1972, relating to the assessment year 1966-67, beyond the five-year limitation period from the end of the relevant period. The respondent-authorities contended that there was no limitation prescribed for issuing a notice under section 11(2) and that the limitation under section 11(4) did not apply to this case.

Upon careful consideration, the court found no merit in the respondent-authorities' argument. Referring to a previous Supreme Court judgment, the court highlighted that the power to make a best judgment assessment must be exercised within the specified time frame, counting from the end of each quarter for which returns were filed. In this case, the Assessing Authority could not proceed with a best judgment assessment for the period ending on 31st March, 1967, after 16th June, 1972, the date of the impugned notice.

The court also addressed a judgment cited by the respondent-authorities, clarifying that it did not contradict the earlier Supreme Court ruling and actually supported the petitioner's case. The court emphasized the importance of timely assessment by the Assessing Authority to avoid the risk of exceeding the limitation period for best judgment assessment under section 11(4).

Based on the legal analysis and precedents cited, the court concluded that the impugned notice issued to the petitioner was without jurisdiction and therefore quashed the notice, allowing the petition in that regard. No costs were awarded in this matter.