Limitation for sales tax assessments bars delayed assessment once the statutory period has expired under the amended regime.

Amendment of section 11 of the Punjab General Sales Tax Act, 1948 introduced a three-year limitation for completing assessments, and the procedural change applied to pending matters, but it did not revive an assessment power after the prescribed period had expired. On the stated facts, the assessment for 1989-90 was made well beyond the outer limit computed under the amended regime, so it was barred by limitation and unsustainable. Earlier authorities cited by the State were distinguished on facts and did not support a later assessment beyond the statutory time limit.

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Issues: Whether, after the amendment of section 11 of the Punjab General Sales Tax Act, 1948 prescribing a three-year limitation for completion of assessment, an assessment for assessment year 1989-90 could validly be made on 29 August 2003.

Analysis: The amended provision introduced a limitation period where none earlier existed for assessments on the basis of returns and for assessments under the relevant sub-sections of section 11. The limitation law is procedural and ordinarily applies to pending matters, but it cannot revive a right already barred or extinguish an accrued right. On the facts, the assessment year in question fell well outside the three-year period computed from the amended regime, and the assessment order was passed long after the outer limit had expired. The earlier decisions relied upon by the State were distinguished on facts and did not assist its case.

Conclusion: The assessment was barred by limitation and was not sustainable. The issue was answered against the appellant and in favour of the assessee.

Ratio Decidendi: A procedural amendment prescribing limitation applies to pending assessments, but once the prescribed period expires, the assessment power cannot be exercised thereafter for that period.

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