Limitation for reassessment does not restrict a registered dealer's original assessment or best judgment assessment under the sales tax statute.

Limitation under section 11-A of the C.P. and Berar Sales Tax Act, 1947 did not govern a registered dealer's first assessment, because that provision applied only to reassessment or additional assessment after a final assessment and escaped turnover. Section 11(5) also did not apply, as it was confined to an unregistered dealer's wilful failure to register. For a pending original assessment under section 11(1) to section 11(4), including best judgment assessment on default of return, there was no final assessment or statutory escaped turnover. The three-year limit in section 11-A could not be imported into the original assessment process, so the limitation challenge failed and the department could proceed under section 11.

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Issues: Whether the limitation in section 11-A or section 11(5) of the C.P. and Berar Sales Tax Act, 1947 applies to notices and assessment proceedings initiated for a registered dealer's first assessment under section 11(1) to section 11(4).

Analysis: The statutory scheme distinguished between a registered dealer, who is bound to furnish returns and is assessed on the basis of those returns or by best judgment under section 11, and an unregistered dealer or a case of completed assessment later found to have escaped assessment. Section 11(5) was held inapplicable because it dealt with wilful failure to apply for registration by an unregistered dealer. Section 11-A was held to be confined to reassessment or additional assessment where there had already been a final assessment and some turnover had subsequently escaped assessment, been under-assessed, or been assessed at a lower rate. Where assessment proceedings were still pending on the dealer's return or on default of return, there was no final assessment and therefore no escaped assessment in the statutory sense. The three-year limitation in section 11-A could not be read back into section 11(1) to section 11(4).

Conclusion: Section 11-A and section 11(5) did not govern the impugned notices or the first assessment proceedings; the challenge based on limitation failed.

Final Conclusion: The appeals succeeded and the order quashing the notices and assessment was set aside, leaving the department free to proceed with the assessment under section 11.

Ratio Decidendi: Limitation for reassessment provisions applies only after a final assessment has been completed, and it does not restrict original assessment proceedings or best judgment assessment of a registered dealer under the principal assessment provisions.

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