Limitation for reassessment under sales tax law cannot be extended by recharacterising the second notice or invoking excluded time.

Reassessment proceedings under the Tamil Nadu General Sales Tax Act were held time-barred because the second notice remained a proceeding under section 16, and a later attempt to justify it under section 55 did not change its character. The exclusion of time under section 16(4) was unavailable to extend limitation for the subsequent notice, since the earlier reassessment had already been made after the Supreme Court had upheld the levy on REP licence sales. On the undisputed dates, the second reassessment was beyond the prescribed period, and the Revenue's challenge failed.

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Issues: Whether the reassessment proceedings were barred by limitation under section 16 of the Tamil Nadu General Sales Tax Act, 1959, and whether the exclusion of time under section 16(4) could be invoked to save the second notice.

Analysis: The notice for the second round of reassessment expressly referred to section 16, and the later attempt to sustain the order under section 55 did not alter the nature of the proceedings. The earlier reassessment had already been made after the Supreme Court had upheld the levy on REP licence sales, so the period sought to be excluded under section 16(4) was not available to extend the limitation for the subsequent notice. On the undisputed dates, the proceedings were therefore beyond the time permitted under section 16.

Conclusion: The reassessment proceedings were barred by limitation and the Revenue's challenge failed.

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