Reassessment with valid sanction survives limitation, but ex parte assessment cannot stand without hearing the assessee.

Statutory sanction for reassessment under the Assam General Sales Tax Act, 1993 saves the reassessment from a limitation challenge, and a fresh reassessment may proceed once the requisite approval is obtained. Even so, an ex parte assessment made before the adjourned date cannot be acted upon if the assessee was not given a proper opportunity of hearing. The operative result is that limitation does not bar reassessment after valid sanction, but finalisation must still comply with natural justice by hearing the assessee before a fresh assessment is made.

---

---

Issues: (i) Whether reassessment under the Assam General Sales Tax Act, 1993 was barred by limitation after sanction was granted by the Commissioner; and (ii) whether the ex parte assessment could be acted upon without affording the assessee a further hearing.

Issue (i): Whether reassessment under the Assam General Sales Tax Act, 1993 was barred by limitation after sanction was granted by the Commissioner.

Analysis: The reassessment was tested against the statutory scheme governing limitation and the extended time available where reassessment is made with the Commissioner's sanction. Since sanction had been granted on 21 March 2011, the reassessment could not be treated as time-barred. The setting aside of the earlier assessment for want of sanction did not prevent a fresh reassessment once the requisite approval had been obtained in accordance with law.

Conclusion: The reassessment was not barred by limitation and was permissible after sanction was granted; this issue is answered against the assessee.

Issue (ii): Whether the ex parte assessment could be acted upon without affording the assessee a further hearing.

Analysis: The assessee's grievance regarding absence of proper hearing was accepted to the extent that the assessing authority was directed to consider the assessee's viewpoint before finalising the matter. The ex parte assessment, having been made before the adjourned date and in the circumstances noticed, was not to be acted upon.

Conclusion: The ex parte assessment was not to be given effect to, and fresh assessment was to be made after hearing the assessee; this issue is answered in favour of the assessee.

Final Conclusion: The reassessment power was upheld on limitation, but the assessment was required to be redone after giving the assessee an opportunity of hearing, with the earlier ex parte assessment kept out of effect.

Ratio Decidendi: Where statutory sanction for reassessment is duly granted within the prescribed framework, reassessment is not barred by limitation; however, the assessment must still comply with the requirement of hearing before finalisation.

---