Limitation for rectification starts on communication of the order, not its mere passing, where the assessee is prejudicially affected.

Limitation for rectification under section 22 of the U.P. Sales Tax Act runs from communication of the order, not merely from the date it is passed, where the order prejudicially affects the assessee and the statute does not clearly indicate otherwise. The court applied the principle that limitation begins when the affected party has actual or constructive knowledge of the order, relying on the approach in Raja Harish Chandra Raj Singh and distinguishing contrary views under the Income-tax Act, 1922. Rectification applications by an assessee therefore cannot be rejected as time-barred solely by reference to the date of the assessment order.

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Issues: Whether the period of three years for rectification of a mistake under section 22 of the U.P. Sales Tax Act runs from the date of the assessment order or from the date on which the order is communicated to, or becomes known by, the assessee.

Analysis: Section 22 permits rectification within three years from the date of any order passed, but the provision is contrasted with the appeal and revision limitation provisions which expressly refer to service of the order. The decision applies the principle that where an order prejudicially affects a party, limitation does not begin merely on the date of making of the order but from the date of communication or from the date the party has actual or constructive knowledge of it. The earlier Supreme Court approach in Raja Harish Chandra Raj Singh was treated as governing the interpretation of the limitation provision, and contrary views under the Income-tax Act, 1922 were not followed.

Conclusion: The limitation under section 22 begins to run from the date the order is communicated to the assessee, or from the date the assessee had an opportunity of knowing its contents fully. The reference was answered in favour of the assessee.

Final Conclusion: The dismissal of the revision left standing the view that rectification applications by an assessee cannot be rejected as time-barred merely by counting limitation from the date of the assessment order; communication of the order is the relevant starting point.

Ratio Decidendi: Where a statutory remedy is available to an affected party and the order prejudicially affects that party, limitation begins when the order is communicated or otherwise comes to the party's knowledge, unless the statute clearly provides otherwise.

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