By C. B. Thakar | Advocate
G. G. Goyal, Janak Vaghani | Chartered Accountants
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Limitation — Reassessment — Issue of notice — Barred by limitation — Reassessment order — Set aside — Section 35 of the Bombay Sales Tax Act, 1959.
Facts
The dealers filed writ petition against issue of notice of reassessment dated February 3, 1999 on the ground of limitation and other legal grounds. The original assessment order for the period 1991- 92 was passed on 31-3-1995. The appeal order was passed on 29-10-1996. The revising authority issued notice in Form 40 for revision of appeal order on 22-1-1997, which was subsequently dropped upon submission made by the dealer on 23-4-1997. Thereafter, enforcement branch of the Sales Tax Department visited the place of business of the dealer and based upon documents found at that time, issued notice for reassessment on 3-2-1999. This notice in Form 28 issued by the enforcement branch for reassessment for the period 1991-92 was challenged by the dealer by filing writ petition before the Bombay High Court being barred by limitation.
Held
The notice for reassessment was issued on 3-2-1999 for the period 1991-92. U/s.35 of the BST Act, no notice for reassessment can be issued after expiry of five years from the end of the financial year. The period of limitation for reassessment starts from 31- 3-1992 i.e., the end of the financial year for which the reassessment is sought. If, one calculates five years from 31-3-1992, the period of limitation expires on 31-3-1997. Under the circumstances the notice for reassessment dated 3-2-1999 is clearly barred by limitation. Accordingly, the High Court quashed and set aside the impugned notice for reassessment.
