Limitation for assessment order, not demand notice, governs validity; later recovery notice does not invalidate timely assessment.

Under the Sales Tax Act, the statutory limitation applies to the assessment order itself, not to the later notice of demand. The assessment order is the act that quantifies tax and penalty, while the demand notice is only a consequential step to recover the assessed amount. The separate appeal period linked to receipt of the demand notice does not extend or control the time limit for making the assessment. On that basis, an assessment order passed within time remains valid even if the initial demand notice was issued later.

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Issues: Whether the assessment order was barred by limitation where the notice of demand was issued after the expiry of the assessment period.

Analysis: The limitation prescribed by section 11(2a) governs the making of the assessment order and not the issuance of the notice of demand under section 11(3). The assessment order is the act by which tax and penalty are quantified, while the demand notice is only a ministerial step to give effect to that assessment. Section 20(1) separately ties the period for appeal to the receipt of the notice of demand, which does not alter the limitation applicable to the assessment itself. The assessment order in question had been passed within time and the later defect in the initial demand notice did not invalidate it.

Conclusion: The assessment order was within limitation and the answer to the question referred was in the affirmative, in favour of the department.

Ratio Decidendi: Under the Sales Tax Act, the statutory period of limitation applies to the assessment order itself, while the notice of demand issued to recover the assessed amount is a consequential ministerial act and does not control the validity of the assessment.

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