Limitation for reassessment under the U.P. Sales Tax Act barred earlier years; stayed periods were excluded, but later year challenge failed.

Ex parte reassessment under the U.P. Sales Tax Act turned on whether section 21 barred the assessments for 1971-72, 1972-73 and 1973-74 and whether stayed periods could be excluded from limitation. The HC applied section 21(2) as the outer time limit and section 21(6) to exclude only the period during which proceedings remained stayed by a court or authority. It found no further legal basis to extend limitation because the impounded books were unavailable, so the reassessment orders for the earlier years were beyond time. For 1974-75, the amended proviso enlarged the limitation, and the challenge failed.

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Issues: Whether the ex parte reassessment orders for the assessment years 1971-72, 1972-73 and 1973-74 were barred by limitation under section 21 of the U.P. Sales Tax Act, and whether the period during which the proceedings remained stayed could be excluded in computing limitation.

Analysis: Section 21(2) prescribed the outer period for making assessment or reassessment, while section 21(6) provided for exclusion of the period during which proceedings remained stayed by court or authority. On the facts, the Court found no legal basis to extend the limitation further on account of non-availability of the impounded books, and the assessment orders for the earlier years were held to be beyond time. For the assessment year 1974-75, the revisionist had accepted that the amended proviso enlarged the limitation, so that challenge failed.

Conclusion: The limitation objection succeeded for the assessment years 1971-72, 1972-73 and 1973-74, and failed for the assessment year 1974-75.

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