Rectification proceedings within limitation preserve authority to pass the order later under the U.P. Sales Tax Act.

A rectification order under section 22 of the U.P. Sales Tax Act, 1948 is not invalid merely because it is passed after three years, if the rectification proceedings were initiated within the prescribed period. The provision requires that notice or an application seeking rectification be made in time; once that condition is met, the authority remains competent to dispose of the matter later. The Allahabad HC held that the Tribunal erred in treating the post-three-year order as time-barred, and upheld the rectification order.

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Issues: Whether a rectification order under section 22 of the U.P. Sales Tax Act, 1948 could validly be passed after expiry of three years when the notice initiating rectification had been issued within the prescribed period.

Analysis: Section 22 permits rectification of an apparent mistake in an order within three years from the date of the order sought to be rectified, and its proviso allows disposal beyond that period where an application has been made within time. The provision was applied to hold that the controlling requirement is the initiation of rectification proceedings within three years. Since notice under section 22 had been issued within the limitation period, the assessing authority retained competence to pass the rectification order even after three years. The Tribunal's contrary view that the order was barred merely because it was made after three years was held to be erroneous.

Conclusion: The rectification order was valid, and the assessee's challenge failed; the Revenue succeeded.

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