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2019 (11) TMI 719 - HC - VAT and Sales TaxTime limitation - scope of the term "assessment" - whether the impugned notices are liable to be interfered with on the ground that they are barred by limitation as provided under Section 24(5) of the PVAT Act, 2007? - HELD THAT:- A careful perusal of provision under Section 24(5) would show that the term "assessment" alone is used and not an "order of assessment". The term "assessment" is defined under Section 2(e) as extracted supra. It means determination of business turnover of a dealer in prescribed manner to ascertain the tax liability under the said Act by self assessment, re-assessment and assessment by scrutiny and best judgment assessment. Therefore, the term "assessment" cannot be construed only as an order of assessment and on the other hand, the said term "assessment" consists several process commencing from the issuance of notice to passing of the order of assessment. Thus, the term "assessment" includes passing of an order of assessment as well and thus, it does not mean the order of assessment as such. Needless to say that for determination of business turnover of a dealer in the prescribed manner and to ascertain the tax liability, the Assessing Officer has to undertake a series of exercise commencing from the issuance of notice, conducting enquiry and thereafter to pass order of assessment. The phrase used under Section 24(5), viz., "no assessment under the Section for any year shall be made after a period of three years" cannot be considered as the one of passing the assessment order itself within three years and on the other hand, if the process of making the assessment begins by issuing a notice within the period of three years, the assessment order passed later, even after the expiry of three years, cannot be hit by the period of limitation, as provided under Section 24(5). In this case, it is seen that summons in Form-PP for the years 2011-12 to 2013-14 were issued on 07.11.2014 and again on 04.01.2016, wherein and whereby the assessee was called upon to produce certain documents with reference to an enquiry under the PVAT Act, 2007, in respect of assessment years 2011-12 to 2014-15. Therefore, the above summons, which is otherwise called as notice calling upon the petitioner to produce the documents for the purpose of assessment in respect of those assessment years, are to be construed as the commencement of assessment proceedings - When the above said notices were issued before the expiry of three years, this Court is of the view that the consequent Pre-assessment notices impugned in these writ petitions are not barred by limitation and therefore, Section 24(5) is not attracted in these cases in any manner. Petition dismissed granting liberty to the petitioner to give reply/objection to the notice of proposal within a period of two weeks from the date of receipt of a copy of this order.
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