R.K. MACHINE TOOLS Vs. STATE OF PUNJAB

JUDGEMENT

(1.) The Tribunal has referred this case by framing the following questions of law for its opinion:

(2.) In the present case, the petitioner who is a registered dealer under the Sales Tax Act is engaged in the manufacture of machine and worsted spinners and yarn. He did not file any return despite issuance of numerous notices in the year 1968-69. Ultimately, the assessing authority raised a demand amounting to Rs. 12,325/- vide order dated 5.4.1971. The aforementioned amount was paid by the assessee. Thereafter, the revisional authority reopened the assessment done vide order dated 5.4.1971, vide order dated 11.7.1984.

(3.) Mr. K.L. Goyal, learned Sr. Advocate submits that assessment order was passed on 5.4.1971, whereas the revisional authority has reopened the matter and and has decided the same vide order dated 11.7.1984, i.e. after an inordinate delay of 131/2 years. Counsel for the petitioner has placed reliance on State of Punjab and Ors. v. Bhatinda District Co. op Milk P. Union, 2007 10 VST 180, wherein the Hon'ble Supreme Court has defined the reasonable period. It is held that reasonable period can be stretched from 3 to maximum of 5 years. Learned Counsel submits that as there was a delay of more than 13 years in the present case, hence, the assessment of the petitioner which had been done on 5.4.1971, could not have been reopened after such an inordinate delay. Counsel for the petitioner has placed reliance on GSTR No. 36 of 2006, M/s Skylark and Restaurant Pvt. Ltd. v. State of Punjab and Ors., decided on 19.1.2010, wherein a similar view has been taken with regard to limitation.