Best judgment assessment notice barred by limitation where the statutory period runs from expiry of the relevant return period.

A notice for best judgment assessment under section 11(2) of the Punjab General Sales Tax Act was treated as barred where the Assessing Authority had not taken an effective step within the prescribed limitation period. The five-year period under section 11(4) was computed from the expiry of the relevant return period, not from a later date. The court read earlier Supreme Court authority on the unamended provision as supporting this approach and treated the later authority as not displacing it. The assessee therefore succeeded on the limitation issue.

---

---

Issues: Whether a notice issued under section 11(2) of the Punjab General Sales Tax Act, 1948 for framing a best judgment assessment was barred by limitation and whether the five-year period in section 11(4) had to be reckoned from the end of the relevant return period.

Analysis: The notice under section 11(2) was examined along with the scheme of section 11(3) and section 11(4). The limitation prescribed for best judgment assessment was held to apply to the taking of effective steps for assessment, including issuance of notice to the dealer. The five-year period had to be counted from the expiry of the concerned period in respect of which the return was filed. The earlier Supreme Court authority on the unamended provision was treated as supporting this approach, and the later authority was read as not departing from it.

Conclusion: The notice was held to be barred by limitation for the relevant period, and the assessee succeeded on this issue.

Ratio Decidendi: Where the statute prescribes a limitation period for best judgment assessment, the Assessing Authority must take an effective step within that period, and the period is computed from the expiry of the relevant return period.

---