Reassessment limitation under repealed sales tax law barred proceedings where the saving clause preserved the earlier three-year period.

For reassessment of escaped sales tax where the original assessment was made under a repealed enactment, the proviso to the new Act preserved the limitation period under the repealed law, and the saving clause protected accrued rights and liabilities. The deeming fiction in the new Act could not extend limitation or override that preservation. Because the reassessment notice was issued after the three-year period applicable under the repealed Act, the proceedings were time-barred and the assessee's limitation objection was upheld.

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Issues: Whether reassessment proceedings for escaped sales tax were governed by the three-year limitation under the repealed Act or the five-year period under the new Act, having regard to the proviso to the reassessment provision and the saving clause.

Analysis: The original assessment had been made under the repealed sales tax law. The proviso to the reassessment provision in the new Act preserved, in cases of assessments made under repealed enactments, the period for reassessment provided by the repealed law notwithstanding repeal. The saving clause in the new Act protected rights, liabilities and obligations already accrued or incurred under the repealed law, and the deeming fiction attached to actions taken under the repealed law was subject to that saving. Since the notice proposing reassessment was issued beyond three calendar years from the expiry of the relevant period, the reassessment was time-barred if the repealed Act applied, and the deeming provision could not enlarge the limitation period or override the saving of accrued rights.

Conclusion: The reassessment proceedings were barred by limitation under the repealed Act, and the assessee's objection was rightly upheld.

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