Limitation bar for review-based reassessment under Bihar sales tax law upheld by binding precedent.

Review proceedings under section 24(5) of the Bihar Sales Tax Act, 1947 were held to fall within the limitation bar in the proviso to section 13(6) where the review effectively initiated reassessment. The Court followed its earlier binding decision construing the limitation scheme to cover such proceedings and declined to refer the matter to a larger Bench, finding the revenue's alternative construction to be only a possible view and not clearly wrong. The reference was answered against the revenue and in favour of the assessee.

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Issues: Whether initiation of review proceedings under section 24(5) of the Bihar Sales Tax Act, 1947, against an earlier assessment order was barred by limitation under section 13(6) of the Act.

Analysis: The question was controlled by an earlier binding decision of the same Court holding that no separate period of limitation had been prescribed for review under section 24(5), and that the proviso to section 13(6) could apply where a review proceeding had the effect of initiating assessment within the meaning of that proviso. The Court declined to refer the matter to a larger Bench, holding that the competing construction urged for the revenue was only a possible view and not one that rendered the earlier decision clearly wrong. Applying the binding precedent, the initiation of review was treated as falling within the limitation bar.

Conclusion: The initiation of the review proceeding was barred by limitation under the proviso to section 13(6) of the Bihar Sales Tax Act, 1947, and the reference was answered against the revenue and in favour of the assessee.

Ratio Decidendi: Where an earlier binding decision has construed the limitation provision to cover a review proceeding that effectively initiates reassessment, that construction must be followed unless shown to be clearly wrong.

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