Limitation for escaped turnover reassessment: notice issued after the statutory period is without jurisdiction.

Escaped turnover could be brought to tax only if the statutory action was initiated within three years from the close of the assessment year under rule 33(1) of the General Sales Tax Rules. An earlier exemption order did not bar reassessment if the turnover was later found taxable, but that power remained subject to the limitation period. A notice issued after 31 March 1959 for the 1955-56 assessment year was outside the permissible time and could not sustain reassessment, leaving such action without jurisdiction.

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Issues: Whether the reassessment and notice issued after 31 March 1959 for the assessment year 1955-56 were within jurisdiction under the limitation scheme governing escaped turnover.

Analysis: The earlier order granting exemption did not prevent action if the turnover was later found taxable, but any step to assess escaped turnover had to be taken within three years from the close of the assessment year as required by rule 33(1) of the General Sales Tax Rules. The notice issued after 31 March 1959 was therefore beyond the permissible period, and the subsequent assessment orders could not be sustained.

Conclusion: The reassessment was without jurisdiction and the challenge failed.

Final Conclusion: The petition for review was rejected, leaving the prior setting aside of the assessment orders undisturbed.

Ratio Decidendi: Where the statutory period for bringing escaped turnover to tax has expired, any notice and reassessment initiated thereafter are without jurisdiction and unenforceable.

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