Limitation for reassessment runs from valid initiation, and an appellate remand does not restart time where proceedings began in time.

Reassessment under the Punjab General Sales Tax Act was held not barred by limitation where the Assessing Authority had taken a definite step to assess within the three-year period through service of the first notice and a best judgment reassessment order. The later appellate setting aside of that order did not erase the earlier valid initiation, because the appeal was allowed for lack of adequate opportunity and not on limitation. A fresh notice issued afterwards was treated as a continuation of proceedings already commenced in time, so the reassessment challenge failed.

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Issues: Whether reassessment proceedings under the Punjab General Sales Tax Act, 1948 were barred by limitation when the initial notice and best judgment reassessment were issued within three years, but a fresh notice was issued after the appellate authority set aside the earlier reassessment order.

Analysis: The controlling principle was that the Assessing Authority must take some definite step showing that it has proceeded to assess within the statutory period, and mere service of notice is not by itself sufficient unless followed by further action within time. On the facts, the first notice was served within the three-year period and the best judgment reassessment order was also made within that period. The setting aside of that order in appeal did not obliterate the earlier proceedings on the ground of limitation, because the appeal was allowed for want of adequate opportunity and not on limitation. The second notice was only a continuation of reassessment proceedings that had already commenced within time.

Conclusion: The reassessment proceedings were not barred by limitation and were valid.

Final Conclusion: The challenge to the sales tax reassessment failed, and the writ petition was dismissed.

Ratio Decidendi: For reassessment provisions prescribing a time limit, limitation is satisfied when the Assessing Authority takes a definite step to proceed with assessment within the prescribed period, and a subsequent appellate remand or fresh notice does not restart the limitation period where the original proceedings had already commenced in time.

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