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2016 (9) TMI 516 - HC - VAT and Sales TaxValidity of order - assessment order - revisional order - Section 21(1) of the Punjab General Sales Tax Act, 1948 - upper limit for revision of the order passed by the assessing authority while exercising powers under Section 21 of the Act is five years as held in the case State of Punjab & ors. Vs. Bathinda District Coop. Milk P. Union Limited 2007 (10) TMI 300 - SUPREME COURT OF INDIA - Held that - the order of assessment was passed by the assessing authority on 23.05.1996 and the revisional order was passed on 27.09.2004 nearly eight years thereafter, hence, the same deserves to be quashed being beyond the period of five years from the date of assessment order - petition allowed - decided in favor of petitioner.
Issues: Challenge to order of Revisional Authority, Tribunal's decision, Recovery/demand notice validity
Challenge to Order of Revisional Authority: The petitioner challenged the order dated 27.09.2004 passed by the Revisional Authority, contending that the assessment for the year 1992-93 was revised under Section 21(1) of the Punjab General Sales Tax Act, 1948. The petitioner relied on a Division Bench judgment of the High Court and argued that the revision order exceeded the five-year limit for revision. The Supreme Court had upheld the Division Bench judgment, establishing the five-year limit for revision under Section 21 of the Act. The High Court noted that the revisional order was passed nearly eight years after the assessment order, which exceeded the statutory limit. Consequently, the High Court quashed the revisional order as it was beyond the permissible timeframe. Tribunal's Decision: The petitioner had also challenged the order dated 17.08.2006 passed by the Value Added Tax Tribunal. Despite the State counsel not disputing the applicability of the five-year revision limit established by the Supreme Court, the Tribunal's decision was based on the revisional order that was subsequently quashed by the High Court. As a result, the High Court quashed the Tribunal's decision as well. Recovery/Demand Notice Validity: Additionally, the High Court addressed the recovery/demand notice dated 24.12.2006. Since the orders of the Revisional Authority and the Tribunal were quashed due to the revision exceeding the statutory limit, the recovery/demand notice issued in consequence of those orders was also deemed invalid. Therefore, the High Court quashed the recovery/demand notice as well. In conclusion, the High Court allowed the writ petition, quashing the orders of the Revisional Authority and the Tribunal, along with the recovery/demand notice, due to the revision exceeding the five-year limit prescribed under the Punjab General Sales Tax Act, 1948.
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