2009 (4) TMI 882 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to assessment order based on limitation under section 11(3) of the Punjab General Sales Tax Act, 1948.

Analysis:
The petitioner sought to quash the assessment order dated April 29, 2005, and the consequential demand raised by the respondents, arguing that the assessment was framed beyond the three-year period stipulated by section 11(3) of the Act. The petitioner's claim was supported by averments, although these were disputed in the written statement. The court declined to determine the limitation issue, stating it involved a mixed question of fact and law. The petitioner was directed to pursue the remedy of filing an appeal under section 20(1) of the Act or approaching the Tribunal with a second appeal. If an appeal was filed within two weeks, it was to be expedited and decided within three months without requiring payment of 25% of the demand under section 20(5) of the Act. The court clarified that if the appeal was unsuccessful, further appeal options were available, and the petitioner could explore other remedies, including challenging the order extending the limitation period before the appropriate authority.

This judgment highlights the importance of adhering to statutory timelines for assessments under the Punjab General Sales Tax Act, 1948. The court emphasized the availability of appeal mechanisms for aggrieved parties, directing the petitioner to pursue the prescribed remedies rather than addressing the limitation issue directly. By reiterating the petitioner's entitlement to various legal remedies, including challenging the extension of the limitation period, the court ensured that due process and avenues for redressal were upheld. The judgment underscores the significance of procedural compliance and the hierarchical nature of legal recourse in tax matters, guiding the petitioner on the appropriate course of action to address their grievances effectively within the framework of the law.