Revisional limitation runs from the appellate order when penalty could have been imposed in appeal proceedings.

For revision under the Madhya Pradesh General Sales Tax Act, the limitation period under section 39(2) was to be computed from the appellate order where the appellate authority had jurisdiction to consider penalty under section 43(1) but did not do so. The revisional power applied to the order prejudicial to revenue and capable of revision, and the appellate order was treated as the relevant order sought to be revised. The proviso to section 39(2) therefore required time to run from the date of the appellate order, making the revision within limitation.

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Issues: Whether, for revision under section 39(2) of the Madhya Pradesh General Sales Tax Act, 1958, the period of limitation of three years was to be computed from the assessment order or from the appellate order where the appellate authority had not considered imposition of penalty under section 43(1).

Analysis: The revisional power under section 39(2) could be exercised against the order that was prejudicial to the revenue and capable of being revised. Section 43 empowered not only the Commissioner but also the appellate authority to take proceedings for penalty in the course of appeal proceedings. Since the appellate authority, while disposing of the appeal, could have imposed penalty but failed to do so, its order was the relevant order sought to be revised. The proviso to section 39(2) therefore required limitation to be counted from the date of the appellate order, not from the assessment order.

Conclusion: The limitation under section 39(2) had to be counted from the date of the appellate order, and the revisional proceedings were within time.

Final Conclusion: The reference was answered in favour of the Revenue on the point of limitation, affirming the Commissioner's competence to revise the appellate order.

Ratio Decidendi: Where an appellate authority has jurisdiction to take action under the penalty provision in appeal proceedings, the order passed by it is the order sought to be revised for the purpose of revisional limitation under the Act.

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