2012 (10) TMI 972 - HC - VAT and Sales Tax

High Court quashes reassessment orders for exceeding time limit under Assam Sales Tax Act

The High Court held that the reassessment orders completed beyond the prescribed time limit under section 19(2) of the Assam General Sales Tax Act, 1993, ... Time limitation - whether the impugned reassessment orders are barred by limitation prescribed under section 19(2) of the Assam General Sales Tax Act, 1993? - Held that: - section 18(1) provides for limitation for initiating the reassessment while section 19(2) prescribes limitation for completing the assessment - In the present case, it is clear that completion of reassessment, i.e., passing of the order of reassessment is beyond the limitation prescribed u/s 19(2) - orders of reassessment quashed - petition allowed - decided in favor of petitioner. Issues: Whether the impugned reassessment orders are barred by limitation prescribed under section 19(2) of the Assam General Sales Tax Act, 1993.Analysis:The High Court heard three writ petitions filed by the same assessee for different assessment years, challenging reassessment orders completed beyond the prescribed three-year period under section 19(2) of the Act. The Revenue argued that the limitation is for initiating reassessment proceedings, not for passing the final order, citing judgments from the Supreme Court. However, the Court distinguished the cases cited, emphasizing that the limitation in the present statute is for 'making assessment,' requiring the final order to be passed within the specified time.The relevant provisions of the Act, specifically sections 18 and 19, were analyzed by the Court. Section 18(1) sets the limitation for initiating reassessment, while section 19(2) specifies the time limit for completing the assessment. The Court concluded that in the case at hand, the reassessment orders were completed beyond the limitation prescribed under section 19(2), indicating a violation of the statutory provisions.In light of the statutory scheme and the specific provisions governing reassessment timelines, the Court found that the completion of reassessment, i.e., passing the order of reassessment, exceeded the prescribed limitation. Consequently, the Court allowed the petitions and quashed the reassessment orders, upholding the assessee's plea regarding the limitation prescribed under section 19(2) of the Assam General Sales Tax Act, 1993.