Amended limitation rules for pending sales tax assessments applied, so the assessment remained within time.

Amendment to the limitation rule for sales tax assessments under the Bengal Finance (Sales Tax) Act, 1941 was applied to a pending assessment proceeding because limitation is procedural in nature. The original four-year period had not expired when section 11(2a) was amended from 1 June 1987 to extend the time for assessments within the stated category. As the assessment was completed before the amended outer limit expired, it was not time-barred. The contrary view treating the assessment as barred by limitation was therefore incorrect.

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Issues: Whether the assessment completed on 10 May 1991 for the quarter ending 31 March 1987 was barred by limitation in view of the amendment to section 11(2a) of the Bengal Finance (Sales Tax) Act, 1941.

Analysis: The assessment was governed by section 11(1) of the Bengal Finance (Sales Tax) Act, 1941 and the relevant limitation provision in section 11(2a). Before the original four-year period expired, section 11(2a) was amended with effect from 1 June 1987 so as to extend the permissible time for completion of assessments falling within the stated category. As limitation is a matter of procedural law, the amended provision applied to the pending assessment proceeding. Since the assessment was completed before the amended outer limit expired, it could not be treated as time-barred.

Conclusion: The assessment was not barred by limitation and the contrary view of the Board was erroneous.

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