Statutory limitation for sales tax assessment cannot be avoided by invoking an ancillary best judgment provision.

Section 41(3) assessments under the Gujarat Sales Tax Act remain subject to the three-year limitation in Section 42(1), and Section 41(7) does not operate as an independent assessment regime that displaces that limit. The scheme distinguishes assessments based on returns, best judgment assessments for non-compliance, and the separate procedure for unregistered dealers, while Section 42(2) applies only where notice is issued under Section 41(6). Resort to Section 41(7) may aid assessment, but it does not take an assessment outside the statutory period. The assessment was therefore time barred.

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Issues: Whether an assessment made under Section 41(3) of the Gujarat Sales Tax Act, 1969 was barred by limitation under Section 42(1) of the Act, and whether Section 41(7) operated as an independent mode of assessment so as to exclude the limitation period.

Analysis: The assessment scheme under Section 41 contemplates different situations for a registered dealer, including assessment on the basis of returns, best judgment assessment on non-compliance, and a separate procedure where a dealer has not obtained registration. Section 42(1) prescribes a three-year time limit for assessments under Section 41(3) and Section 41(4), while Section 42(2) applies only where notice is issued under Section 41(6). Section 41(7) was treated as a mechanism that may be invoked in aid of assessment, but not as a standalone mode displacing the limitation applicable to assessments otherwise governed by Section 42(1). Accordingly, mere resort to Section 41(7) did not take the assessment outside the statutory period of limitation.

Conclusion: The assessment order remained subject to Section 42(1) and was time barred; the question of law was answered in favour of the assessee and against the State.

Final Conclusion: The reference was answered by holding that the statutory limitation for completion of assessment applied, and the State could not avoid that limitation by invoking Section 41(7).

Ratio Decidendi: A provision enabling best judgment or ancillary assessment procedure does not, by itself, create an independent regime that excludes the express limitation period applicable to the substantive assessment provision.

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