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of <h1>Tribunal Invalidates Assessment Order Due to Statutory Limitation Exceeded</h1> <h3>Mafatlal Industries Ltd. and Another Versus CTO. and Others</h3> The Tribunal allowed the application, quashing the assessment and demand notice, as the assessment order exceeded the statutory limitation period, deeming ... - Issues involved:The judgment involves the challenge of assessment for four quarters ending March 31, 1975, under section 11(1) of the Bengal Finance (Sales Tax) Act, 1941. The main issues revolve around whether the sales of movables were in the course of closure of the business and whether the assessment itself is barred by limitation.Challenge to Assessment:The applicant argued that the sale of movables totaling Rs. 95,64,000 was made during the closure of the business and should not be liable to tax. Additionally, they contended that the assessment was barred by limitation due to the delay in issuing the demand notice. The applicant relied on various decisions to support their arguments, including a Supreme Court case.Respondent's Position:The respondents argued that the sales of movables were not part of the closure of the business but were conducted in the normal course of business operations. They cited several decisions to support their stance, emphasizing that the sales were incidental to the business. The respondents also addressed the issue of limitation, attributing the delay in serving the demand notice to inadvertence.Limitation and Assessment Order:The Tribunal found that the assessment order was not issued within the prescribed period of four years from the relevant date. Citing a Supreme Court precedent, the Tribunal held that in the absence of a satisfactory explanation for the delay, the assessment order was deemed invalid. Consequently, the Tribunal set aside the assessment based on the limitation issue, without delving into the question of whether the sales were in the course of business closure.Judgment and Conclusion:Ultimately, the Tribunal allowed the application, quashing the assessment dated August 25, 1993, and the demand notice issued on October 7, 1994. No costs were awarded in this matter. The decision was based on the finding that the assessment order was invalid due to exceeding the statutory limitation period, rendering the assessment and demand notice null and void.
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