Limitation for suo motu revision is procedural when the statute only fixes time to exercise the revisional power.

Limitation for suo motu revision under section 57 of the Bombay Sales Tax Act, 1959 was treated as procedural where the statute fixed only the time for exercise of revisional power and did not extinguish the power on expiry. The applicable limitation was therefore governed by the law in force when revision proceedings were initiated. On the stated facts, returns had been filed by 14 May 1964, but revision notice was issued only on 14 March 1972, after the third amendment had introduced a three-year period from communication of the order sought to be revised. The notice was accordingly time-barred.

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Issues: Whether the notice for suo motu revision issued under section 57 of the Bombay Sales Tax Act, 1959, was barred by limitation, having regard to the dates of filing of returns, assessment, and commencement of revision proceedings.

Analysis: The applicable limitation had to be determined with reference to the law in force when revision proceedings were initiated, because a period of limitation ordinarily governs procedure and does not itself create or extinguish the substantive liability. The right of revision may be substantive in the abstract, but where the statute merely prescribes the time within which that right is to be exercised, the time-limit is procedural unless the provision itself makes the power cease after the expiry of time. On the facts, the returns had been filed by 14 May 1964, so assessment proceedings had commenced by then, but the notice for revision was issued on 14 March 1972. By that date the third amendment to section 57 was in force, under which notice for suo motu revision had to be served within three years from communication of the order sought to be revised. The notice in the present case was well beyond that period.

Conclusion: The notice for suo motu revision was time-barred, and the answer to the referred question was in the negative and against the department.

Ratio Decidendi: Where a statute prescribes only a period within which a revisional power must be exercised, without extinguishing the power itself on expiry of time, the limitation provision is procedural and the law in force when revision is initiated governs the proceeding.

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