Transitional limitation under sales tax laws barred delayed assessments after the HVAT regime commenced.

Under the transitional scheme between the repealed Haryana General Sales Tax Act, 1973 and the Haryana Value Added Tax Act, 2003, substantive provisions of the earlier regime continued to govern proceedings initiated under it, but the limitation provision in the HVAT Act applied to pending matters after its commencement. For assessments relating to periods before 01.04.2003, completion had to occur within the limitation period counted from the HVAT Act's commencement. Assessments made after expiry of that period were time-barred, and the challenge to the Tribunal's order failed.

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Issues: Whether the assessment proceedings were barred by limitation in view of the transitional scheme under the Haryana Value Added Tax Act, 2003 and the Haryana General Sales Tax Act, 1973.

Analysis: The limitation question was governed by the statutory transition between the repealed sales tax regime and the Haryana Value Added Tax Act, 2003. The Court followed the earlier binding view that substantive provisions of the earlier Act continue to apply to proceedings initiated under that regime, but the limitation provision under the HVAT Act applies to pending proceedings after its commencement. On that basis, assessments relating to periods prior to 01.04.2003 had to be completed within the limitation period counted from the commencement of the HVAT Act, and assessments made after expiry of that period were time-barred.

Conclusion: The assessment was held to be barred by limitation, and the challenge to the Tribunal's order failed.

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