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2022 (9) TMI 999 - HC - VAT and Sales TaxValidity of assessment order - concessional rate of tax - computation of the turnover refers to Form 'C' - time limitation - Section 18 of Central Sales Tax Act - HELD THAT:- Section 18 sets out a limitation of five years from the expiry of the year to which the assessment relates, for assessment of escaped turnover. Thus, for determination of the turnover that has allegedly escaped assessment for the period 2003-04, the period of five years would expire by 31.03.2009 whereas the impugned notice has been issued only on 04.12.2020. The re-computation of turnover under notice dated 04.12.2020 and the consequent denial of exemption under the provisions of the Central Sales Tax Act are set aside - the purpose of re-determination of the turnover and denial of exemption is only to proceed as aginst the petitioner under the provisions of Section 49 of the Act which provides for offences and penalties as well as the relevant provisions of the Central Sales Tax Act providing for penalties. Section 468(2) sets out the periods of limitation, based on the category of punishment to be imposed, as six months, one year or three years, in the case of offences punishable with (i) fine (ii) imprisonment for a term not exceeding one year or (iii) imprisonment a for term within one month but less than three years, respectively - The critical word used therein is ‘offence’ that postulates that the escapement of turnover ought to have been ‘determined’, and validly so, as a pre-condition for the limitation under Section 468(2) to stand triggered. Such determination of escapement of turnover, ought to have been made within the time period set out under Section 18 of the Act which has not been done in this case. The impugned notice is thus, also mis-conceived as it proceeds to contemplate a criminal liability in respect of an offence that is incapable of determination, being barred by law. Petition allowed.
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