Limitation in sales tax assessment is satisfied when proceedings begin in time, even if the final order follows later.

Assessment proceedings against a registered dealer under the Punjab General Sales Tax Act begin when returns are filed or when a statutory notice under section 11(2) is issued. If that initiation occurs within the prescribed limitation period, the proceedings remain pending until final assessment, and the later date of the assessment order does not by itself render the assessment time-barred or without jurisdiction. On that principle, a notice served before expiry of three years validly commenced the proceedings, and the assessment made later remained within jurisdiction; the limitation objection therefore failed.

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Issues: Whether an assessment under section 11 of the Punjab General Sales Tax Act, 1948, is time-barred and without jurisdiction when the notice under section 11(2) is issued within three years from the expiry of the period for filing returns, but the final assessment order is made after that period.

Analysis: The statutory scheme distinguished between a regular assessment on accepted returns, an enquiry assessment after notice under section 11(2), and best judgment assessments under section 11(4) to 11(6). Assessment proceedings in the case of a registered dealer commence when returns are filed or when a notice under section 11(2) is issued. Once so commenced within the prescribed period, the proceedings remain pending until final assessment is made. The timing of the final order does not by itself create a bar of limitation if the proceedings were validly initiated in time. Applying that principle, the notice served on the dealer before expiry of three years lawfully commenced the proceedings, and the subsequent assessment remained within jurisdiction notwithstanding that the final order was passed later.

Conclusion: The assessment was not time-barred and was not without jurisdiction; the objection based on limitation failed.

Ratio Decidendi: In assessment proceedings against a registered dealer, limitation is satisfied if the proceedings are initiated within the prescribed period by filing of returns or by issuance of a statutory notice, and a final order made thereafter is valid so long as the proceedings remained pending from a timely commencement.

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