Limitation for revisional sales tax powers under the Central rule runs from the end of the assessment year, not service of the order.

Section 9(2) of the Central Sales Tax Act permits State authorities to exercise revisional powers on behalf of the Union, but only subject to the Central Act and the rules framed under it. For escaped assessment and under-assessment, the governing Central rule provided a four-year limitation from the expiry of the year to which the tax relates, and rule 14-A(11) extended that limitation to the revising authority. The Andhra Pradesh limitation provision in section 20(3), which runs from service of the assessment order, was held not to control action taken under section 9(2). The operative starting point was the end of the assessment year, not service of the original order, with the result that the revisional order was time-barred.

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Issues: Whether the revisional order passed by the Deputy Commissioner under section 9(2) of the Central Sales Tax Act, exercised read with the State sales tax law, was barred by limitation and whether the limitation in section 20(3) of the Andhra Pradesh General Sales Tax Act, 1957 or the limitation in rule 14-A(8)(b) of the Central Sales Tax (Andhra Pradesh) Rules, 1957 applied.

Analysis: The power under section 9(2) of the Central Sales Tax Act enables the State sales tax authorities to act on behalf of the Union, but that power is expressly made subject to the Central Act and the rules framed thereunder. The relevant Central rule governing escaped assessment and under-assessment prescribes that revisional or assessment powers may be exercised within four years from the expiry of the year to which the tax relates, and rule 14-A(11) extends that limitation and those conditions to the revising authority. By contrast, section 20(3) of the Andhra Pradesh General Sales Tax Act fixes limitation from the date of service of the assessment order. Since the Central rule is the controlling provision for action taken under section 9(2), the relevant starting point was the expiry of the assessment year, not the date of service of the original order.

Conclusion: The revisional order was barred by limitation and the contention based on section 20(3) of the Andhra Pradesh General Sales Tax Act, 1957 was rejected.

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