Limitation for reassessment turns on issue of notice, not service, under Tamil Nadu sales tax law.

Under section 16 of the Tamil Nadu General Sales Tax Act, reassessment of escaped turnover must be initiated within five years from the expiry of the relevant year. The key question was whether limitation turned on service of the reassessment notice or on its issue. The Madras High Court applied the principle that reassessment proceedings commence when the assessing authority issues the notice initiating revision, not when it is served on the assessee. Because the notice was issued before expiry of the limitation period, the proceedings were treated as in time and the limitation objection based on delayed service failed.

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Issues: Whether reassessment proceedings under section 16 of the Tamil Nadu General Sales Tax Act, 1959 were barred by limitation because the notice proposing revision was served after expiry of five years, or whether the relevant date was the date of issue of the notice.

Analysis: Section 16 permits assessment of escaped turnover within five years from the expiry of the relevant year. The decisive question was when reassessment proceedings are initiated. The Court applied the principle that initiation occurs when the assessing authority issues the notice commencing reassessment, and not when the notice is served on the assessee. Since the notice proposing revision was issued on 30 March 1972, before expiry of the limitation period, the proceedings were within time.

Conclusion: The reassessment proceedings were not barred by limitation and the objection based on late service of notice failed.

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