TaxTMI 
TaxTMI 
2015 (9) TMI 1327
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....b (in short, "the Tribunal"), claiming following substantial questions of law: "(i) Whether the order passed by the learned Tribunal is sustain able in law ? (ii) Whether, the order passed by the learned Tribunal by relying upon the judgment of this honourable court in the case of Shubh Timb Steels Limited v. State of Punjab [2010] 31 VST 85 (P&H) is sus tainable in law when in the present case, the respondent had intentionally withheld the legitimate purchase tax due to be deposited along with the returns ? (iii) Whether the learned Tribunal had rightly allowed the appeal of the respondent when the amendment dated April 20, 1998 is applicable with effect from the date of notification, i.e., prospectively and not retrospectively ? (iv) Whether the dealer is entitled to relief of legitimate tax payable by the respondent voluntarily along with the returns, but avoided its payment wilfully, solely on the ground of limitation ? (v) Whether the respondent is entitled to pocket the purchase tax withheld intentionally but while selling their finished products and by-products the said element was kept in mind and added the same in the sale price of particular item produced o....
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.... 5. We have heard learned counsel for the parties and perused the record. 6. The learned counsel for the appellants submitted that the issue which arises for consideration in these appeals is whether the assessment which has been framed beyond the period of three years from March 3, 1998 when Ordinance No. 1 of 1998 had been promulgated by the State of Punjab whereby limitation period of three years had been prescribed by it for framing of assessment, the same would not be applicable relating to the assessment year and period prior to March 3, 1998. Learned counsel further argued that the longer period of limitation is an accrued right and it cannot be taken away by any amendment which is procedural in nature. Reference was made to judgments in Indian Aluminium Cables Ltd. v. Excise and Taxation Officer [1977] 39 STC 19 (SC); AIR 1977 SC 540, T. Kaliamurthi v. Five Gori Thaikkal Wakf [2008] 9 SCC 306, Thirumalai Chemicals Limited v. Union of India [2011] 163 Comp Cas 380 (SC); AIR 2011 SC 1725, and CWP No. 16890 of 1995, Sadhu Singh Hamdard Trust v. Assistant Commissioner of Income-tax, Jalandhar [2014] 3 ITR-OL 441 (P&H), decided on July 4, 2013. 7. The learned counsel for ....
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....ch such dealer may rely in support of such returns. (3) On the day specified in the notice or as soon afterwards as may be, the Assessing Authority shall, after hearing such evidence as the dealer may produce, and such other evidence as the Assessing Authority may require on specified points, assess the amount of tax due from the dealer." Section 11(1), (2) & (3) (amended) "(1) If the Assessing Authority is satisfied without requiring the presence of dealer or the production by him of any evidence that the returns furnished in respect of any period are correct and complete, he shall pass an order of assessment on the basis of such returns within a period of three years from the last date prescribed for furnishing the last return in respect of such period. (2) If the Assessing Authority is not satisfied without requiring the presence of dealer who furnished the returns or productions of evidence that the returns furnished in respect of any period are correct and complete, he shall serve on such dealer a notice in the prescribed manner requiring him, on a date and at place specified therein, either to attend in person or to produce or to cause to be produced any evidence ....
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....d cheque or bank draft. Under the proviso, a registered dealer exclusively dealing in goods liable to tax at the first stage of the sale and has paid the tax on the purchase of such goods within the State of Punjab shall furnish return in form VIII annually within thirty days of the expiry of each year. Further, it has been provided that where a registered dealer has turnover below rupees two lacs in a year shall furnish return in form ST VIII (in pink colour) annually within thirty days of the expiry of each year. Rule 20 reads thus: "Every registered dealer shall furnish returns in form ST VIII quarterly within a period of thirty days from the expiry of each quarter, if the amount of tax due as per returns is deposited in cash into the Government Treasury, or, the Reserve Bank of India; and within a period of twenty days from the expiry of each quarter, if the amount of tax due is only paid through crossed cheque or bank draft, as the case may be, drawn on a local Scheduled Bank in favour of Assessing Authority at the District Excise and Taxation office: Provided that a registered dealer dealing exclusively in goods liable to tax at the first stage of sale and who has paid ....
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....lier, but they are prospective in the sense that they neither have the effect of reviving the right of action which is already barred on the date of their coming into operation, nor do they have effect of extinguishing a right of action subsisting on that date. Bennion on Statutory Interpretation, Fifth Edition (2008), page 321 while dealing with retrospective operation of procedural provisions has stated that provisions laying down limitation periods fall into a special category and opined that although prima facie procedural, they are capable of effectively depriving persons of accrued rights and therefore they need be approached with caution." Thus, the effect of the amendment by Ordinance dated March 3, 1998 which was replaced by Punjab Act 12 of 1998 published on April 20, 1998 would be that the amended provisions prescribing limitation would operate retrospectively and would govern all assessments pending relating to periods before the amendment came into operation. 13. Further, once a period of limitation prescribed by law expires, the right to sue or pass an order comes to an end. Resultantly, a vested or an accrued right arises in favour of a party. On expiry of the ....
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....t order before the amendment. Therefore, the period of three years prescribed for passing an assessment order would be counted for all those assessment years as per the amended provision effective from March 3, 1998. In other words, in respect of assessment years falling up to 1997-98, no assessment order could be validly passed after April 30, 2001. 15. Identical issue in respect of assessment years prior to amendment of section 11(3) of the PGST Act with effect from March 3, 1998 came up for consideration before this court in Ballarpur Industries Limited's case [2010] 35 PHT 5 (P&H), wherein it was held as under: "29. There is no dispute that prior to the amendment of provisions of section 11 of the PGST Act with effect from March 3, 1998 there was no limitation provided amount of tax due from the dealer on the basis of returns where the Assessing Officer was satisfied with the returns furnished by the dealer. There was also no limitation provided for the assessing authority to assess the dealer under sub-section (3) of section 11 if he was not satisfied with the returns by issuance of statutory notice in the prescribed form under sub-section (2) of section 11 of the Ac....