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2015 (9) TMI 1327 - HC - VAT and Sales TaxDemand and recovery of purchase tax after 5 years - period of limitation - Punjab Value Added Tax Act, 2005 - the respondent /assessee had intentionally withheld the legitimate purchase tax due to be deposited along with the returns - Held that:- 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 prescribed for assessing the amount of tax due from the dealer on the basis of returns where the Assessing Officer was satisfied that the returns furnished by the dealer were correct and complete. It is well-settled that law of limitation is a procedural law and operates retrospectively unless it has been provided differently in the amending statute. In other words, unless there is a contrary intention manifested by express or necessary implication of the legislation itself, procedural law is generally retrospective. 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. The assessment year involved herein is 1989-90. The assessment under section 11(3) of the PGST Act was framed on August 29, 2003 which is clearly beyond the period of limitation of three years from the date of amendment and thus not sustainable in the eyes of law. - Decided against the revenue.
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