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TMI Blog2017 (7) TMI 374X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 (for short 'the Act, 1994') has been issued after expiry of the original period of limitation as provided under Section 27 (8) of the Act, 1994? Held that: - Section 27 (8) of the Act, 1994 provides that the assessment shall be made in respect of a registered dealer and a dealer referred to in clause (b) of sub-section (6) within a period of two calender years from the end of the period for which assessment is to be made; and (ii) in respect of a dealer who has failed to apply for registration, within a period of two calender years from the commencement of proceedings under sub-section (6) - In the cases in hand all the petitioners are registered dealers, therefore, they would be covered under Clause (i) of sub-section (8). Sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f limitation as prescribed under Section 27 (8) was to expire on 31.12.2000 for the assessment year 1997- 98 and so on for two subsequent assessment years. It is also not in dispute that the State Government issued first such notification on 29.12.2000 extending the period to 28.02.2001 which was within time as the same was issued before expiry of original period of limitation i.e. 31.12.2000, however, next notification was not issued before 28.02.2001 but it was issued on 01.03.2001, after the extended period had expired on 28.02.2001. The subsequent notifications were also issued after the expiry of extended period of limitation, however, that may not be significant because the first notification itself was issued at the time when the ext ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covered by the said decision. 6. In Shreyans (supra), the Supreme Court was dealing with the appeal preferred by the State of Punjab challenging the order passed by the Punjab Haryana High Court whereby dealing with similar provisions, the High Court had allowed the plea that an assessment proceeding continued on the strength of similar notifications which were issued after the prescribed period of limitation was over, would not revive the assessment proceedings which had already expired by operation of law. Negativing the plea of Punjab Government, the Supreme Court reproduced the provision contained in Section 11 (10) of the Punjab General Sales Tax Act, 1948, which provide that the Commissioner, may for reasons to be recorded in wr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sly, the purpose of giving reasons in writing is to ensure that the power to extend the period of limitation is exercised for valid reasons based on material considerations and that power is not abused by exercising it without any application of mind, or mala fide or on irrelevant considerations or for extraneous purposes. Such an order of extension of time, naturally, is open to judicial review, albeit within the confines of law on the basis of which such judicial review is permissible. Thereafter, the Supreme Court observed that the issue of validity of the notification which was issued after the original time of limitation was over to conclude thus in para 20, 22 23:- 20. We may say at the outset that though provisions of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (6) In computing the period of limitation for assessment under this section- (a) the time during which the proceedings for assessment in question have been deferred on account of any stay order granted by any court or any other authority shall be excluded; (b) the time during which the assessment has been deferred in any case or class of cases by the Joint Commissioner for reasons to be recorded in writing shall be excluded. 22. Even otherwise, it is important to understand the ratio laid down in the judgment of the Karnataka High Court in BHEL. The issue in the said case before the Karnataka High Court was as to whether the power to pass a deferment order is to be exercised even after the expiry of the period of limita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e would be no question of extending the time for assessment when the assessment has already become time-barred. A valuable right has also accrued in favour of the assessee when the period of limitation expires. If the Commissioner is permitted to grant the extension even after the expiry of original period of limitation prescribed under the Act, it will give him right to exercise such a power at any time even much after the last date of assessment. In the instant appeals itself, when the last dates of assessment were 30-4-2004, 30-4-2005, 30-4- 2006 and 30-4-2007, orders extending the time under Section 11(10) of the Act were passed on 17-8-2007, 17- 8-2007, 17-8-2007 and 25-5-2007 respectively. Thus, for Assessment Year 2000-2001, order of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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