Assessment limitation cannot be revived by a post-expiry extension unless the statute clearly authorises it.

A statutory power to extend the time for assessment must be exercised before the prescribed limitation period expires unless the enactment clearly authorises post-expiry extension. Under the Punjab General Sales Tax Act, the normal three-year assessment period could be enlarged by the Commissioner for recorded reasons, but only while that period was still alive. Once limitation expired, the dealer acquired a protected right against assessment, and the extension power could not revive a time-barred assessment.

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Issues: Whether the Commissioner under Section 11(10) of the Punjab General Sales Tax Act, 1948 could extend the period for passing an assessment order after the original three-year limitation under Section 11(3) had already expired.

Analysis: The statutory scheme prescribed a normal period of three years for assessment where returns had been filed, while separately empowering the Commissioner to extend that period for recorded reasons. The extension power was intended to enlarge the assessment period and to prevent expiry of limitation only when exercised before the period lapsed. Once the prescribed period expired, the dealer acquired a valuable right not to be subjected to assessment, and the power to extend could not revive a time-barred assessment. The reasoning was aligned with the view that a power to extend or defer time cannot operate after limitation has run out unless the statute clearly says so.

Conclusion: The Commissioner could not validly extend the assessment period after expiry of the original limitation. The challenge to the extension orders failed, and the appeals were dismissed.

Ratio Decidendi: A statutory power to extend the time for assessment must be exercised before the expiry of the prescribed limitation period unless the enactment clearly authorises post-expiry extension.

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