Pending tax assessments may be completed without a fixed limitation where the statute prescribes none, the Court held.

Assessment proceedings initiated by notice after returns were filed were treated as pending until final assessment, and they could be completed under the ordinary assessment procedure. The Court held that, for assessments under the relevant provisions corresponding to sub-sections (2) and (3), no fixed statutory limitation barred completion where the statute had not prescribed one. It distinguished best judgment assessments and escaped turnover cases, declined to read in a rigid time limit, and directed that pending assessments be concluded on the existing record and any further material available, with expedition in tax administration. The challenge failed and the petitions were dismissed.

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Issues: Whether assessment proceedings initiated by notice under the relevant sales tax provisions remained pending and could be completed under the ordinary assessment procedure without being barred by limitation, and whether the challenge to the impugned notices and the related writ relief could succeed.

Analysis: The notice under the assessment provisions had been issued after returns were filed, and the proceedings had not culminated in final assessment orders. The Court treated such proceedings as pending until completion of assessment and held that, for assessments under the provisions corresponding to sub-sections (2) and (3), no fixed statutory limitation barred their completion. The Court distinguished the position from best judgment assessments and from escaped turnover cases, and declined to import a rigid time limit where the statute had not prescribed one. It also held that the pending assessments should be concluded on the basis of the existing record and such further material as the authority might obtain, while emphasising expedition in tax administration.

Conclusion: The challenge failed. The assessments were permitted to be completed under the ordinary assessment provision, and the petitions were dismissed.

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