Reassessment notice held time-barred where statutory limitation expired before issuance under the Bombay Sales Tax Act.

A reassessment notice issued under section 35 of the Bombay Sales Tax Act, 1959 was invalid because it was served after the five-year limitation period had expired. The relevant financial year ended on 31 March 1992, so limitation ran from that date and expired on 31 March 1997. As the notice was issued only on 3 February 1999, it was time-barred and could not be sustained. The Court therefore quashed the notice and found it unnecessary to consider the other objections raised.

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Issues: Whether the notice of reassessment dated 3 February 1999 was barred by limitation under section 35 of the Bombay Sales Tax Act, 1959.

Analysis: The relevant financial year was 1991-92, so the period of limitation began on 31 March 1992, being the end of that financial year. On a five-year computation under section 35 of the Bombay Sales Tax Act, 1959, the limitation expired on 31 March 1997. The reassessment notice was issued on 3 February 1999, well beyond that period. In these circumstances, the notice could not be sustained, and it was unnecessary to examine the other grounds raised.

Conclusion: The notice of reassessment was barred by limitation and was quashed. The petition succeeded.

Ratio Decidendi: A reassessment notice issued after expiry of the statutory limitation period is invalid and liable to be quashed.

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