Retrospective tax amendment validated reassessment made under revisional directions despite expiry of the original limitation period.

The U.P. Sales Tax Act, 1948 originally limited escaped-assessment proceedings to three years from the end of the assessment year and did not distinguish between suo motu reassessment and reassessment made under appellate or revisional directions. A retrospective amendment to section 21 later authorised reassessment on escaped turnover and excluded the limitation period where reassessment was made to give effect to a finding or direction under the Act. Because the amendment was deemed to operate from the commencement of the principal Act, reassessment pursuant to the revisional direction was treated as within jurisdiction and not barred by limitation.

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Issues: Whether reassessment directed by the revisional authority was barred by limitation under section 21 of the U.P. Sales Tax Act, 1948, and whether the retrospective amendment to section 21 validated the reassessment proceedings.

Analysis: Section 21 as originally stood limited escaped-assessment proceedings to three years from the end of the assessment year and did not distinguish between reassessment initiated suo motu and reassessment undertaken pursuant to appellate or revisional directions. The amended provision, substituted retrospectively by Act 19 of 1956, expressly authorised reassessment on escaped turnover and provided that the time-limit would not apply where the assessment or reassessment was made in consequence of, or to give effect to, any finding or direction contained in an order under sections 9, 10 or 11. Because the amendment was deemed to have been in force from the commencement of the principal Act, the reassessment initiated pursuant to the revisional direction was within jurisdiction and not defeated by limitation.

Conclusion: The limitation objection failed, and the reassessment proceedings were valid.

Final Conclusion: The retrospective amendment to the sales tax law governed the matter, with the result that reassessment pursuant to the revisional order could proceed notwithstanding expiry of the original limitation period.

Ratio Decidendi: Where a taxing statute is retrospectively amended to exempt reassessment made in consequence of a statutory appellate or revisional direction from the limitation period, the amended provision governs pending proceedings and validates the reassessment.

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