Suo motu rectification time limit under sales tax law cannot be extended by an in-time notice

Under section 37 of the Assam General Sales Tax Act, 1993, suo motu rectification had to be completed within three years from the end of the financial year in which the assessment or order was made. A notice issued within time did not extend or validate an order passed after that limitation period, because the statutory language was plain and had to be applied strictly. The rectification order was therefore time-barred and without authority of law.

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Issues: Whether a suo motu rectification of an assessment under section 37 of the Assam General Sales Tax Act, 1993 could be sustained when the rectification order was passed after the expiry of the prescribed three-year period, though the notice initiating the process had been issued within time.

Analysis: Section 37(1) draws a clear distinction between rectification made of the authority's own motion and rectification made on a dealer's or affected person's notice. For suo motu rectification, the authority must act within three years from the end of the financial year in which the assessment or order was made. The provision does not permit enlargement of that period merely because the rectification process was initiated within time. Where the statutory language is plain and unambiguous, it must be given effect according to its terms, and a taxing provision is to be construed strictly. The notice issued within time could not validate an order passed after the limitation period had expired.

Conclusion: The suo motu rectification order passed beyond the statutory period was time-barred and without authority of law.

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