Limitation for escaped-assessment penalty proceedings cannot be extended by a fresh-assessment exclusion provision; the notice was time-barred.

Penalty proceedings for escaped turnover under the Andhra Pradesh General Sales Tax Act were held to be governed by the specific limitation period in section 14(4-A), with only the exclusions expressly provided for that class of proceedings in sections 14(5) and 14(6). Section 14(7), which applies only to a fresh assessment after an assessment is set aside by the appellate authorities or courts, could not be used to extend limitation for an independent escaped-assessment penalty action under section 14(4). The penalty notice was therefore time-barred, and the impugned notice and consequential penalty order were quashed.

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Issues: Whether penalty proceedings initiated in respect of escaped turnover under section 14(4) of the Andhra Pradesh General Sales Tax Act were barred by limitation under section 14(4-A), and whether the exclusion provision in section 14(7) applied.

Analysis: Section 14(4) empowered the assessing authority to assess escaped turnover and also to direct payment of penalty. Section 14(4-A) prescribed the limitation period of six years or four years, as the case may be, for such action. Section 14(7) was confined to a fresh assessment after an assessment had been set aside by the Appellate Tribunal, the High Court, or the Supreme Court, and did not apply to proceedings initiated independently on escaped turnover under section 14(4). The only exclusions available for action under section 14(4) were those specifically provided in sections 14(5) and 14(6).

Conclusion: The penalty notice was barred by limitation and section 14(7) could not be invoked to save it.

Final Conclusion: The writ petition succeeded and the impugned notice and consequential penalty order were quashed.

Ratio Decidendi: Where the statute prescribes a specific limitation period for escaped-assessment proceedings, the period can be extended only by the exclusions expressly provided for that class of proceedings, and a provision meant for fresh assessment after reversal cannot be used to enlarge limitation for independent escaped-assessment penalty action.

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