Limitation for audit assessment under VAT law cannot be extended after expiry of the original period; post-expiry assessment was void.

Section 42(6) of the Orissa Value Added Tax Act required audit assessment to be completed within six months of receipt of the Audit Visit Report, with any extension up to a further six months requiring the Commissioner's approval within that original period. The Court held that once the initial limitation period had expired, a later extension could not revive the power to assess. Because the extension was granted after expiry, the assessment was time-barred and without jurisdiction. The writ petitions were accordingly allowed.

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Issues: Whether the assessment made under Section 42 of the Orissa Value Added Tax Act, 2004 was barred by limitation and whether extension of time for completing the assessment could validly be granted after expiry of the original six-month period.

Analysis: The statutory scheme under Section 42(6) required the audit assessment to be completed within six months from receipt of the Audit Visit Report, with a further extension of up to six months available only on the Commissioner's approval. The record showed that the original limitation period had already expired before extension was sought and granted. Applying the principle that an extension enlarging limitation must be exercised before the expiry of the normal period, the Court held that a post-expiry extension could not revive the power to assess. The assessment was therefore made without jurisdiction.

Conclusion: The challenge succeeded. The assessment was held to be time-barred and without jurisdiction, and the writ petitions were allowed.

Ratio Decidendi: Where a statute prescribes a fixed period for completing assessment and permits extension only within that period, the extension must be granted before expiry of the original limitation period; a post-expiry extension is ineffective and any assessment founded on it is jurisdiction.

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