Assessment limitation cannot be revived by a belated extension notification after the statutory period has already expired.

A statutory extension of the assessment period must be issued before the original limitation expires. Under Section 27(8) of the Chhattisgarh Commercial Tax Act, 1994, the normal assessment period lapses on expiry of the prescribed time, and Section 27(9) can extend that period only by a timely notification for recorded reasons. A notification issued after expiry cannot revive proceedings that have already become time-barred, because the dealer acquires immunity from assessment and the Department's power to assess is extinguished. On that basis, belated extension notifications cannot sustain assessment proceedings initiated beyond the original limitation period, and the writ petitions succeeded.

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Issues: Whether assessment proceedings could be continued on the strength of a notification extending the assessment period under Section 27(9) of the Chhattisgarh Commercial Tax Act, 1994, when that notification was issued after expiry of the original limitation period under Section 27(8).

Analysis: Section 27(8) prescribed the normal period within which assessment had to be completed, while Section 27(9) empowered the State Government to extend that period by notification for reasons recorded in writing. The extension power was held to be analogous in substance to provisions considered by the Supreme Court, where it was ruled that an extension of time must be made before the original limitation expires. Once the statutory period lapses, the assessment becomes time-barred, immunity from assessment accrues to the dealer, and the Department's power to assess is extinguished. A notification issued after expiry of the original period cannot revive proceedings that have already become barred by time.

Conclusion: The post-expiry notification was invalid to revive the lapsed assessment proceedings, and the challenge succeeded in favour of the assessees.

Final Conclusion: Assessment proceedings initiated beyond the original limitation period could not be sustained on the basis of a belated extension notification, so the writ petitions succeeded and the proceedings were quashed.

Ratio Decidendi: A statutory power to extend the period for assessment must be exercised before the original limitation expires, and a notification issued after expiry cannot revive time-barred assessment proceedings.

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