Limitation for sales tax assessment is satisfied by timely initiation through valid notice, even if final assessment follows later.

Sales tax assessment proceedings under Section 11(4) and Section 11(5) are not barred by limitation merely because the final assessment order is passed after three years. The statutory period is satisfied when proceedings are validly commenced by a return or by notice issued and served within time, and the proceedings remain pending until final assessment. On that basis, the assessment was held not time-barred and the challenge to quash the proceedings on limitation grounds failed.

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Issues: Whether assessment proceedings under Section 11(4) and Section 11(5) of the Punjab General Sales Tax Act are barred by limitation only because the assessment order is passed after three years, or whether it is sufficient that the notice initiating the proceedings is issued within the prescribed period.

Analysis: The statutory scheme treats assessment proceedings as commencing when the dealer furnishes a return or when a notice is issued for assessment under the relevant sub-sections. The governing principle is that if proceedings are initiated within the prescribed period, they remain pending until final assessment is made, and the assessment does not become invalid merely because the final order is passed after expiry of three years. The earlier decision on the point, subsequently followed in another case with similar facts, was applied to hold that the notice issued and served within time validly commenced the proceedings.

Conclusion: The assessment proceedings were not time-barred, since they were initiated within the prescribed period; the writ petition challenging the proceedings was not maintainable on the ground of limitation.

Final Conclusion: Initiation of sales tax assessment proceedings within the statutory period preserves their validity even if the assessment is completed later, and the assessee was not entitled to quash the proceedings under Article 226 of the Constitution of India.

Ratio Decidendi: In sales tax assessment proceedings, limitation is satisfied when the proceeding is commenced by a valid return or notice within the prescribed period, and a final assessment made thereafter is not invalid on that ground alone.

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