Assessment remand as continuation of original proceedings kept limitation under the Bihar Sales Tax Act from barring fresh assessment.

A remand under section 24(3)(b) of the Bihar Sales Tax Act, 1947 that sets aside an assessment for further inquiry and a fresh order does not annul the original proceedings. The Patna HC held that such a direction keeps the assessment pending and operates as a continuation of the original proceeding, rather than starting a new reassessment. On that basis, the two-year limitation in the proviso to section 13(6) for initiating fresh assessment proceedings was not attracted in the same way as where an assessment is annulled. The fresh assessments were therefore not barred by limitation.

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Issues: Whether the fresh assessment made pursuant to the appellate remand was barred by limitation under the proviso to section 13(6) of the Bihar Sales Tax Act, 1947.

Analysis: The proviso to section 13(6) barred initiation of assessment proceedings beyond two years from the date of disposal of an appeal directing fresh assessment. The appellate authority had not annulled the assessment but had set it aside under section 24(3)(b) and directed further inquiry and a fresh order. Such a remand did not terminate the original assessment proceedings; it kept them pending and amounted only to their continuation. Limitation for initiation of a fresh proceeding therefore did not arise in the same manner as where an assessment is annulled and a new reassessment is commenced.

Conclusion: The fresh assessments were not barred by limitation, and the question was answered against the assessee and in favour of the department.

Ratio Decidendi: A remand under section 24(3)(b) that sets aside an assessment for further inquiry does not initiate a fresh reassessment proceeding but continues the original assessment proceeding, so the limitation bar in the proviso to section 13(6) is not attracted in the same way as in cases of annulment.

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