Escaped-turnover proceedings apply to deemed assessments when initiated within limitation under the Karnataka Sales Tax Act.

Escaped-turnover proceedings under the Karnataka Sales Tax Act were treated as timely because the section 12A notice was issued within the three-year period counted from the return, and the deemed assessment date under section 12(7) did not prevent earlier initiation of proceedings. The statutory scheme was read to extend escaped-turnover provisions mutatis mutandis to deemed assessments, so section 12A remained available even where assessment was not formally completed. The challenge on limitation and maintainability therefore failed on the stated facts and statutory interpretation.

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Issues: (i) Whether proceedings under section 12A of the Karnataka Sales Tax Act, 1957 were barred by limitation. (ii) Whether section 12A could be invoked in respect of a deemed assessment under section 12(7) of the Karnataka Sales Tax Act, 1957.

Issue (i): Whether proceedings under section 12A of the Karnataka Sales Tax Act, 1957 were barred by limitation.

Analysis: The return was filed on 24 August 2000 and, on the record, the notice under section 12A was issued on 6 March 2003, which was within the three-year period contemplated by section 12(5). The deemed assessment date under section 12(7) did not alter the fact that initiation of escaped-turnover proceedings had already occurred within time.

Conclusion: The proceedings were not time-barred and the finding was against the assessee.

Issue (ii): Whether section 12A could be invoked in respect of a deemed assessment under section 12(7) of the Karnataka Sales Tax Act, 1957.

Analysis: Section 12(7) expressly provides that where an assessment is not concluded within the stipulated time, the return is deemed to have been assessed and the provisions relating to escaped turnover apply mutatis mutandis to such deemed assessment. On that statutory scheme, the escaped-turnover mechanism under section 12A applies even where the assessment is deemed rather than formally completed.

Conclusion: Section 12A was applicable to a deemed assessment and the finding was against the assessee.

Final Conclusion: The revision petition failed because the escaped-turnover proceedings were initiated within the statutory period and were maintainable against a deemed assessment; the challenge to jurisdiction also did not survive.

Ratio Decidendi: Where the statute deems a return to be assessed and expressly extends escaped-turnover provisions to such deemed assessment, proceedings under the escaped-turnover provision are maintainable if initiated within the prescribed limitation period.

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