Valid prior assessment required for reassessment; time-bar under limitation law also defeated the VAT proceedings.

A reassessment under Section 40 of the Assam Value Added Tax Act, 2003 cannot be initiated unless there is a valid prior assessment or a deemed self-assessment under Section 35. Because the monthly returns for the relevant year were not filed within time, no deemed self-assessment arose in law, and Section 40 could not be used as a jurisdictional basis. The court further held that the assessment for 2014-2015 was barred by limitation under Section 39. The reassessment order and demand notice were therefore quashed in favour of the assessee.

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Issues: Whether reassessment under Section 40 of the Assam Value Added Tax Act, 2003 could be sustained in the absence of a valid prior assessment or deemed self-assessment under Section 35, and whether the proceedings were barred by limitation under Section 39.

Analysis: Section 29 and Rule 17 required periodical returns within the prescribed time. Section 35 treated an assessment as deemed completed only where all returns, annual returns or revised returns were filed within time and tax due thereon was paid. On the facts, the monthly returns for the relevant year were not filed within the prescribed time, so no self-assessment could be deemed to have been completed in law. Section 40 could be invoked only after an assessment under Sections 34, 35, 36 or 37, making such prior assessment a condition precedent to reassessment. As no valid assessment existed, the very initiation of proceedings under Section 40 lacked jurisdiction. The court also held that the assessment for the year 2014-2015 had become time-barred under Section 39.

Conclusion: Reassessment under Section 40 was invalid, without jurisdiction, and could not be sustained; the impugned reassessment order and demand notice were quashed in favour of the assessee.

Ratio Decidendi: Reassessment for escaped turnover cannot be made unless there is a valid prior assessment or deemed assessment in law, and statutory limitation for completing assessment must be strictly observed.

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