Saving clause and extended limitation upheld escaped turnover reassessment after repeal of the old sales tax law.

A repeal did not extinguish tax liability already incurred under the Madras General Sales Tax Act, 1939 where the saving clause in the Andhra Pradesh General Sales Tax Act, 1957 preserved accrued rights and liabilities, so additional assessment for escaped turnover remained competent after the new Act came into force. On limitation, the reassessment was governed by the extended period introduced by the 1957 Act because it took effect before the earlier three-year period expired, and the reassessment was completed within four years of the assessment year. The document therefore concludes that the additional assessments and penalty were sustained.

---

---

Issues: (i) Whether additional assessment for escaped turnover under the repealed Madras General Sales Tax Act, 1939 could be made after the Andhra Pradesh General Sales Tax Act, 1957 came into force; (ii) Whether such additional assessment was barred by limitation.

Issue (i): Whether additional assessment for escaped turnover under the repealed Madras General Sales Tax Act, 1939 could be made after the Andhra Pradesh General Sales Tax Act, 1957 came into force.

Analysis: The charging provision imposed the tax liability on the dealer in respect of the total turnover, while assessment was only the machinery for quantifying and collecting that liability. Section 41 of the Andhra Pradesh General Sales Tax Act, 1957 preserved rights, obligations and liabilities already acquired, accrued or incurred under the repealed enactments. The liability to tax having arisen during the operation of the old Act, the repeal did not extinguish the power to complete assessment and recover tax on escaped turnover.

Conclusion: The additional assessment was competent and valid notwithstanding the repeal.

Issue (ii): Whether such additional assessment was barred by limitation.

Analysis: Under the old rules the reassessment period was three years, but Section 14(4-A) of the Andhra Pradesh General Sales Tax Act, 1957 prescribed a longer period. Since the extended period came into force before the earlier period expired, the amended limitation applied. The reassessment was made within four years of the assessment year, and therefore within time.

Conclusion: The assessment was not barred by limitation.

Final Conclusion: The tax revisions failed in entirety, and the revenue authorities' additional assessments and penalty were sustained.

Ratio Decidendi: A repeal does not extinguish tax liability already incurred under the repealed enactment where the saving clause preserves accrued rights and liabilities, and an enlarged limitation period applies to reassessment if it comes into force before the earlier period expires.

---