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Issues: (i) Whether an assessment under section 11(1) of the Sales Tax Act could be made after the expiry of three years from the relevant period. (ii) Whether a notice under section 11(2) of the Sales Tax Act could be issued after the expiry of three years from the relevant period.
Issue (i): Whether an assessment under section 11(1) of the Sales Tax Act could be made after the expiry of three years from the relevant period.
Analysis: The governing Full Bench decision held that the limitation of three years applied to the issuance of notice under section 11(2), but not to the making of the assessment under section 11(1). The assessment process itself was therefore not barred merely because it was completed after three years.
Conclusion: Yes. An assessment under section 11(1) could be made more than three years after the expiry of the relevant period.
Issue (ii): Whether a notice under section 11(2) of the Sales Tax Act could be issued after the expiry of three years from the relevant period.
Analysis: The Full Bench decision treated the issue of notice as the critical step subject to the three-year limit, and a notice issued beyond that period was not permissible.
Conclusion: No. A notice under section 11(2) could not be issued more than three years after the expiry of the relevant period.
Final Conclusion: The appeals failed because the impugned notice was time-barred, and the order setting it aside was left undisturbed.
Ratio Decidendi: Where the statute prescribes a period of limitation for issuing notice, the assessment may still be completed later, but the notice must be issued within the prescribed time.
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