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2012 DIGILAW 953 (GAU)

Indian Oil Corporation Ltd. v. State of Assam

2012-08-09

A.K.GOEL, N.KOTISWAR SINGH

body2012
ORDER 1. This petition seeks quashing of order of assessment dated August 31, 2009 and further proceedings in pursuance thereof under the provisions of the Assam General Sales Tax Act, 1993 and the Central Sales Tax Act, 1956. The case of the petitioner is that no assessment was made for the assessment year 1993-94 within the time prescribed under section 19 of the Act. For the first time, notice dated Jury 18, 2008 was issued, which was beyond 14 years of the end of the year. The petitioner raised objection of bar of limitation vide letter dated August 5, 2009 but on August 31, 2009 the impugned order of assessment was made, which was against the statutory provision of section 19 of the Act of 1993. 2. In the reply filed on behalf of the State, the assessment has been defended by stating that the return was filed on June 23, 1997 and the proceedings were pending before this court and, therefore, the assessment could not proceed. Vide order dated September 3, 1997 in Civil Rule No. 3438 of 1994 order of status quo was passed. The said writ petition was disposed of January 17, 2003. 3. We have heard learned counsel for the parties. 4. Section 19 of the Act of 1993 which provides for time-limitation for assessment and reassessment, is as follows: 19. Time-limit for completion of assessment and reassessments.--(1) No assessment shall be made under section 17 after the expiry of three years from the end of the year in respect of which or part of which the assessment is made or, in a case where the dealer has furnished a return or a revised return under sub-section (4) of section 16 after the expiry of two years (from the end of the year) in which such return or revised return is received by the assessing officer, whichever is later: Provided that in a case falling under sub-section (6) of section 17, the assessment may be made at any time before the expiry of eight years from the end of the year in respect of which or part of which the assessment is made under that sub-section. (2) No reassessment under section 18 shall be made-- (a) in a case falling under clause (a) of that section, after the expiry of three years; and (b) In a case falling under clause (b) of that section, after the expiry of one year from the end of the year in which the notice under that section is served on the dealer. (3) Notwithstanding anything contained in sub-section (1) or sub-section (2) an assessment re-assessment or re-computation to give effect to any order or direction in, appeal, revision or reference, may be made at any time before the expiry of two years from the end of the year in which the order-in-appeal, revision or reference is communicated to the assessing officer. Explanation.--In computing the period of limitation for the purpose of sub-section (1) or sub-section (2), the period during which the assessment proceeding is stayed by an order or injunction of any court or other authority, shall be excluded and such proceeding may be completed within one year from the end of the year in which the stay was vacated as if the limitation period had not expired. 5. A perusal of the above shows that time-limit for completion of assessment has been indicated and after expiry of the said period, no assessment can be made, unless the assessment proceeding is stayed by an order of court. 6. The learned counsel for the State relies upon judgment of the honourable Supreme Court in Indian Aluminium Cables Ltd. v. Excise and Taxation Officer [1977] 39 STC 19 (SC) : [1977] 1 SCC 120, as applicable at the relevant time. However, learned counsel for the State is unable to show that the provision considered in the said judgment was identical to section 19 of the Act of 1993. Thus, the judgment relied upon is distinguishable. In view of above, we allow this petition and quash the order of assessment and the subsequent proceedings. In favour of Department.