Mandatory limitation for tax assessment excludes only stay periods; time-barred assessment was quashed under the Assam sales tax law.

A taxing statute prescribing a mandatory limitation period for assessment cannot permit assessment after expiry of that period except where the statute itself allows exclusion for a stay of proceedings by a competent court or authority. Under section 19 of the Assam General Sales Tax Act, 1993, the explanation excluded only the period during which proceedings were stayed, so delay beyond the prescribed period could not be cured on the facts stated. The Supreme Court authority relied on was treated as distinguishable because the provision there was not shown to be identical. The assessment was therefore held time-barred and the impugned order and consequential proceedings were quashed.

---

---

Issues: Whether the assessment order was barred by limitation under section 19 of the Assam General Sales Tax Act, 1993, and whether the period of stay of proceedings could be excluded for computing limitation.

Analysis: Section 19 prescribed the time-limit for completion of assessment and reassessment, and the Explanation permitted exclusion only of the period during which the assessment proceeding was stayed by an order or injunction of a court or other authority. On the facts, the assessment for the relevant year was initiated long after the prescribed period had expired. The reliance placed on a Supreme Court decision was found distinguishable because the provision considered there was not shown to be identical to section 19 of the 1993 Act.

Conclusion: The assessment was held to be time-barred, and the impugned order as well as the consequential proceedings were quashed in favour of the petitioner.

Ratio Decidendi: Where a taxing statute prescribes a mandatory limitation period for assessment, the assessment cannot be made after expiry of that period unless the case falls within the specific statutory exclusion for stay of proceedings by a competent court or authority.

---