TMI Blog2008 (8) TMI 806X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Sales Tax Act, 1956 read with section 68 of the VAT Act impugning the judgment and order dated July 28, 2008 passed by the Punjab Value Added Tax Tribunal, Chandigarh (hereinafter referred to as the Tribunal ). The assessee-company is a dealer registered under the provisions of the Punjab General Sales Tax Act, 1948 (hereinafter referred to as 1948 Act ) which stands replaced by the Punjab VAT Act, 2005. The assessment year concerned in the present appeal is 2000-01. The assessee filed its quarterly return for the said year. The time-limit for completing the assessment is three years from the end of the year under section 11(3) of the 1948 Act. The said period expired on April 30, 2004 but no assessment was made up to that date. On October 5, 2006 notice for assessment was issued under section 11(3). The assessee took an objection that the notice was beyond the period of limitation. Thereafter the order granting extension of time was passed on August 17, 2007 by the Excise and Taxation Commissioner, Patiala. Later, assessment was made and demand notice was issued. The assessee preferred an appeal against the extension order dated August 17, 2007 passed under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of assessment not for any supervening events but for default/failure of the assessing authority? (viii) Whether the learned Tribunal is justified in holding that the pendency of the case for the year 1999-2000 is a valid reason to enable respondent No. 3 to extend the time to pass the orders of assessment? We have heard learned counsel for the parties. Learned counsel for the assessee submits that the extension of time under section 11(10) of the 1948 Act is required to be within the period of limitation for assessment and pendency of the appeal of the assessee for the previous year was not a valid reasons. It is further submitted that in exercising power granting extension of time, principle of natural justice was required to be followed and opportunity of being heard was required to be given. Learned counsel for the respondent-Revenue submitted that there being no limit for exercise of power of extension, the power was validly exercised. Pendency of appeal of the assessee for the previous year was a valid ground. Principles of natural justice were not applicable as power of extension was an administrative power and did not affect any civil rights. The question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of limitation but not thereafter. The learned judges held: 'In order to avail of the benefit of exclusion under the second proviso to section 42(1), the assessment proceedings must be stayed before the expiry of the period of limitation. Any order made after the period of expiry of limitation staying the assessment proceedings cannot relate back to revitalise the proceedings. At the expiry of the period of three years from the dates stipulated in section 42(1)(a), the authority to make an assessment order ends.' 9.. The same view was taken by a learned single Judge of this court in Shaw Wallace Co. Ltd. v. Deputy Commissioner of Commercial Taxes (Assessment-2), Gandhinagar, reported in [1998] 111 STC 339. Mohan Kumar, J. observed thus: 'Upon the lapse of the period mentioned in sub-section (5) of section 12 of the Karnataka Sales Tax Act, 1957, the right of the department to assess an assessee gets extinguished. That extinction confers a very valuable right on the assessee . . . When an order of deferment is made, then the time fixed under section 12(5) stops to run. Therefore, when such an order of deferment is being made, it should be during the period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iving the dealer a reasonable opportunity of being heard, pass an order of assessment to the best of his judgment. (6) If upon information which has come into his possession, the assessing authority is satisfied that any dealer has been liable to pay tax under this Act in respect of any period but has failed to apply for registration, the assessing authority shall, within five years after the expiry of such period, after giving the dealer a reasonable opportunity of being heard, proceed to assess to the best of his judgement, the amount of tax, if any, due from the dealer in respect of such period and all subsequent periods and in case where such dealer has wilfully failed to apply for registration, the assessing authority may direct that the dealer shall pay by way of penalty, in addition to the amount so assessed, a sum not exceeding one-and-a-half times that amount. (7) The amount of any tax, penalty or interest payable under this Act shall be paid by the dealer in the manner prescribed, by such date as may be specified in the notice issued by the assessing authority for the purpose and the date so specified shall not be less than fifteen days and not more than thirty days ..... X X X X Extracts X X X X X X X X Extracts X X X X
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