Escaped assessment limitation applies only after an original assessment; absent that, reassessment challenge fails.

A reassessment under section 16 of the Tamil Nadu General Sales Tax Act, 1959 applies only where turnover has escaped an original assessment. Where no return was filed, no turnover was offered for assessment, and no original assessment had taken place, the proceeding is an original assessment rather than a reassessment for escaped turnover. The limitation period governing escaped assessment under section 16 therefore does not bar such an assessment. The Madras HC accordingly rejected the challenge based on limitation and upheld the view that section 16 was inapplicable on these facts.

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Issues: Whether proceedings could be treated as reassessment proceedings under section 16 of the Tamil Nadu General Sales Tax Act, 1959, and whether the limitation period under that provision barred the assessment when no return had been filed and no original assessment had taken place.

Analysis: Section 16 applies only where turnover has escaped assessment after an original assessment. The legal basis of escapement presupposes that there was a prior assessment process from which turnover could have escaped. In the present case, no return was filed, no turnover was offered for assessment, and no original assessment had been made. The assessment was therefore not one for escaped turnover but an original assessment made after the assessee failed to respond to repeated summons and the pre-assessment notice. The limitation provision for reassessment under section 16 was thus inapplicable.

Conclusion: The challenge to the assessment on the ground of limitation under section 16 failed, and the contention was rejected.

Ratio Decidendi: Reassessment for escaped turnover is maintainable only where there has been an original assessment; in the absence of any original assessment, the limitation governing escaped assessment under section 16 does not apply.

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