Limitation in sales tax assessment proceedings was jurisdictional, so a late notice could not sustain the assessment.

Assessment proceedings under section 19 of the Kerala General Sales Tax Act, 1963 had to be initiated in the prescribed manner within four years from the expiry of the relevant year, and limitation was treated as a jurisdictional requirement. For the assessment year 1988-89, the outer limit expired on 31 March 1993. The revenue notice was issued after that statutory period, so it could not validly initiate proceedings within time. The proceedings were therefore time-barred and not sustainable, with the finding in favour of the assessee.

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Issues: Whether the assessment proceedings were barred by limitation under section 19 of the Kerala General Sales Tax Act, 1963.

Analysis: Section 19 required the assessing authority to proceed in the prescribed manner within four years from the expiry of the year to which the tax related. For the assessment year 1988-89, the relevant outer limit expired on 31 March 1993. The notice relied upon by the revenue was issued after the statutory period, and a notice issued beyond the limitation period could not satisfy the mandatory requirement of initiating proceedings within time. Limitation under the provision was treated as a jurisdictional matter, and proceedings continued beyond the statutory period were not sustainable.

Conclusion: The proceedings were time-barred and could not be sustained. The finding was in favour of the assessee.

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