Assessment Limitation Depends on When the Order Is Made, Not When It Is Served

Under section 12(5) of the Karnataka Sales Tax Act, limitation turns on whether the assessment is made within three years from filing of the return, because the statute uses the word "made" rather than "issued" or "served". The court held that completion of the assessment within the prescribed period satisfies the time bar, and delayed service of the assessment order does not render it invalid. Section 12(7) was read consistently with this plain meaning, treating the assessment as completed once made in time. The revision therefore failed and the Tribunal's remand order remained undisturbed.

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Issues: Whether, under section 12(5) of the Karnataka Sales Tax Act, 1957, an assessment is barred by limitation if the assessment order is made within three years from the date of filing of the return but served on the dealer after expiry of that period.

Analysis: Section 12(5) bars making of an assessment after three years from the date of submission of the return. The expression used by the statute is "made", not "issued" or "served". Applying the plain meaning of the words, the time-limit attaches to completion of the assessment by the assessing authority and not to service of the assessment order. Section 12(7) also supports the position that assessment is deemed completed by operation of law once made within time. Authorities suggesting a stricter rule based on delayed service were not accepted.

Conclusion: The assessment was not time-barred merely because the order was served after the limitation period, since it had been made within time.

Final Conclusion: The revision failed, and the Tribunal's remand order was left undisturbed.

Ratio Decidendi: For the purpose of section 12(5) of the Karnataka Sales Tax Act, 1957, the relevant act is making the assessment within the prescribed period; subsequent service of the assessment order does not affect limitation.

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