Limitation for revisional notices under the VAT regime controls old assessments after repeal, making late notice time-barred.

A revisional notice issued after repeal of the Delhi Sales Tax Act, 1975 had to satisfy the limitation period under the surviving revisional provision in the Delhi Value Added Tax Act, 2004. The earlier Full Bench position recognised that proceedings relating to old assessments could continue under Section 74A, but only within its prescribed time limit. Because the assessment order had been served on 02.03.2005 and the four-year outer limit expired on 31.03.2009, a notice dated 02.02.2010 was beyond time. The longer limitation under the repealed sales tax law did not apply, and the notice was treated as time-barred and liable to be quashed.

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Issues: (i) Whether the impugned revisional show cause notice was barred by limitation under the Delhi Value Added Tax Act, 2004 in the light of the repeal of the Delhi Sales Tax Act, 1975 and the retrospective introduction of the revisional power.

Analysis: The earlier Full Bench ruling had held that proceedings arising from assessments under the repealed Delhi Sales Tax Act, 1975 could be continued or initiated under Section 74A of the Delhi Value Added Tax Act, 2004, but only within the limitation prescribed by that provision. Section 74A(2)(b) barred passing of a revisional order after four years from the end of the year in which the assessment order was served on the dealer. As the assessment order had been served by 02.03.2005, the outer limit expired on 31.03.2009. The show cause notice dated 02.02.2010 was therefore beyond time. The limitation under Section 74A governed the case, not the earlier five-year period under Section 46 of the Delhi Sales Tax Act, 1975.

Conclusion: The show cause notice was held to be time-barred and liable to be quashed in favour of the assessee.

Final Conclusion: The writ petition succeeded because the revisional notice was issued after the expiry of the applicable limitation period under the governing VAT regime.

Ratio Decidendi: Where a repealed sales tax assessment is sought to be revised after the new VAT regime has come into force, the revision must comply with the limitation period prescribed by the surviving revisional provision, and a notice issued beyond that period is barred even if the earlier repealed law contained a longer limitation period.

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