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TMI Blog2010 (4) TMI 993X X X X Extracts X X X X X X X X Extracts X X X X ..... he bare minimum facts that need a necessary mention, have been extracted from G.S.T.R. No. 1 of 2005 titled as Shubh Timb Steels Limited v. State of Punjab . The compendium of the facts, culminating in the commencement of, relevant for disposal of, these reference petitions filed by the petitioner-assessees, M/s. Shubh Timb Steels Ltd. and M/s. A. B. Tools Ltd. (for brevity the assessees ) and emanating from the records, is that the assessees were engaged in the business of iron and steel and were registered under the Punjab General Sales Tax Act, 1948 (for short, the Act ). They filed all the returns including the returns for the assessment years 1987-88, 1988-89 and 1989-90 within a stipulated period. The matter for the assessment year 1987-88 was remanded by the Deputy Excise and Taxation Commissioner (Appeals). In the wake of remand, the Assessing Authority created an additional demand in respect of the assessment year 1987-88, vide order dated January 30, 1996. Sequelly, an additional demand was also created with regard to the assessment year 1988-89 vide order dated September 29, 1997 and assessment year 1989-90, vide order dated December 22, 1997. Feeling aggrieved wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh, ultimately goods are received back in Punjab State and sold as such there (Punjab State)? (iii) Whether, in the facts and the circumstances of the case, the assessment (original as well as assessment on remanded case) of the dealer framed by the Assessing Authority is assessment under section 11(4) of the Punjab General Sales Tax Act, 1948 and therefore time barred having been completed beyond the period of five years prescribed under the said sub-section? (iv) Whether the Assessing Authority is justified to frame assessment of the dealer on the transaction liable to purchase tax, being timebarred under section 11(5) of the Act ibid and therefore beyond jurisdiction, when no return of purchase tax was ever filed by the dealer? (v) Whether on the peculiar facts and circumstances of the case, the levy of purchase tax under section 4B of the Punjab General Sales Tax Act, 1948 is against the general scheme of the Act to levy tax on goods at one stage and therefore liable to be quashed? Whether any such levy of tax will be violative of articles 301 and 304 of the Constitution of India? That is how, we are seized of the matter. At the very outset, learned counsel for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Authority passed the impugned assessment orders beyond the period of more than seven years in the relevant assessment years. Thus, it would be seen that the facts of this case are neither intricate nor much disputed. Above being the position on record, now the sole question, that arises for determination, is whether the impugned assessment orders passed by the Assessing Authority beyond the period of five years are legal or not? An identical question arose for determination before the honourable apex court in Bhatinda District Coop. Milk P. Union Ltd.'s case [2007] 10 VST 180; [2007] 30 PHT 474, wherein it was ruled that if no period of limitation has been prescribed, then the statutory authority must exercise its jurisdiction within a reasonable period. What, however, shall be the reasonable period would depend upon the nature of the statute, rights and liabilities thereunder and other relevant factors and such jurisdiction should ordinarily be exercised within a period of three years and in any event, the same should not exceed the period of five years. Again, relying upon the judgment of the honourable Supreme Court in Bhatinda District Coop. Milk P. Union Ltd.' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me view was reiterated. Moreover, section 11 of the Act postulates that if the Assessing Authority is satisfied that the returns furnished in respect of any period are correct and complete, he shall pass an order of assessment on the basis of such returns within a period of three years from the last date prescribed for furnishing the last return in respect of such period and if the Assessing Authority is not satisfied with the returns, then he shall serve on such dealer a notice in the prescribed manner and on the date specified in the notice, the Assessing Authority shall, after hearing such evidence as the dealer may produce and such other evidence as the Assessing Authority may require on specified points, pass an order of assessment within a period of three years from the last date prescribed for furnishing the last return in respect of any period . Not only that, proviso to section 14 of the Act further posits that the Commissioner or any person cannot direct the assessee to produce books, documents and the accounts of a period more than five years prior to the year in which assessment is made . Meaning thereby, a conjoint reading of these provisions coupled with legal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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