Limitation cannot bar scrutiny of a demand notice where its validity affects the foundation of the assessment proceedings.

A challenge to a demand notice and the resulting assessment proceedings could not be rejected solely on limitation where the legality of the notice went to the foundation of the demand. The Tribunal was required to examine the validity of the notice and the consequential assessment issues on the materials produced by the assessee. The matter was remitted for fresh consideration of those questions, and the certificate proceeding was directed to remain stayed pending disposal of the revisional application. The order under challenge was set aside to the extent necessary so the dispute could be adjudicated on the merits of the foundational notice and its consequences.

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Issues: (i) Whether the revisional application could be rejected solely on the ground of limitation without examining the validity of the demand notice. (ii) Whether the matter required remand to the Tribunal for consideration of the legality of the demand notice and consequential assessment matters.

Issue (i): Whether the revisional application could be rejected solely on the ground of limitation without examining the validity of the demand notice.

Analysis: The challenge raised substantive questions regarding the legality of the demand notice and the resulting proceedings. A procedural objection of limitation was held not to be a sufficient ground to decline examination of those questions where the validity of the notice could affect the foundation of the demand and the assessment process.

Conclusion: The rejection of the application merely on limitation was not sustained.

Issue (ii): Whether the matter required remand to the Tribunal for consideration of the legality of the demand notice and consequential assessment matters.

Analysis: Since the controversy involved questions of law and fact, the matter was directed to be reconsidered by the Tribunal competent to examine the validity of the demand notice and any consequential changes in the assessment orders on scrutiny of the materials produced by the assessee. The certificate proceeding was also directed to remain stayed pending disposal of the revisional application.

Conclusion: The matter was remitted to the Tribunal for fresh consideration of the specified issues.

Final Conclusion: The order under challenge was set aside to the extent necessary and the dispute was sent back for adjudication on the validity of the demand notice and connected consequences.

Ratio Decidendi: Where a challenge raises substantive issues about the validity of a demand notice, limitation alone should not prevent adjudication on merits, and remand may be ordered for proper consideration of the foundational legality of the proceedings.

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