Limitation for sales tax assessments: Section 41(7) is not an independent mode and remains subject to Section 42(1).

Section 41(7) of the Sales Tax Act was construed as a best-judgment step in aid of assessment, not as an independent assessment regime. Read with Section 42, the time limit in Section 42(1) was held to govern assessments under Section 41(3), 41(4) and 41(5), while the extended periods in Section 42(2) applied only where notice under Section 41(6) had been issued. As no such notice was issued, invoking Section 41(7) did not displace the limitation under Section 42(1), and the assessment was barred by limitation.

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Issues: Whether an assessment made under Section 41(7) of the Sales Tax Act is governed by the time limit prescribed under Section 42(1) of the Act, and whether Section 41(7) creates an independent mode of assessment outside that limitation.

Analysis: Section 41 and Section 42 were read together to distinguish assessments made on registered dealers from assessments made after notice under Section 41(6). The time limit in Section 42(1) was held to apply to assessments under Section 41(3), Section 41(4) and Section 41(5), while the extended periods in Section 42(2) were held applicable only where notice under Section 41(6) had been issued. Section 41(7) was treated as only a best-judgment step in aid of assessment and not as an independent assessment regime. On that construction, invoking Section 41(7) did not exclude the limitation prescribed by Section 42(1).

Conclusion: The assessment was barred by limitation, and the question was answered in favour of the assessee and against the revenue.

Ratio Decidendi: Section 41(7) does not create an independent mode of assessment; where no notice under Section 41(6) is issued, the assessment remains subject to the limitation under Section 42(1).

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