Limitation in Tax Law is Sacrosanct: SC Bars Revival of Expired Assessments
M/s Shiv Steels v. State of Assam & Ors.
Citation: Civil Appeal Nos. 4440–4442 of 2014
Issue:
Whether the State could reopen reassessments after the original assessments were already held to be time-barred?
Facts:
1. The assessee, M/s Shiv Steels, was assessed under the Assam General Sales Tax Act, 1993 (AGST Act) for A.Ys. 2003–04, 2004–05, 2005–06.
2. The assessments were challenged as time-barred under Section 19 of the Act. The Assessing Authority itself acknowledged the expiry of limitation.
3. Later, the Department sought to reopen the assessments by obtaining Commissioner’s sanction under Section 21, claiming that reassessment within an extended period was still permissible.
Hon SC held as below:
1. A taxpayer can be taxed only if the case falls strictly within the letter of the law. Limitation in tax statutes is absolute – it cannot be circumvented by executive action.
2. Strict interpretation of fiscal statutes is mandatory: “No tax can be imposed by inference or analogy.
3. Appeals are allowed.
The copy of the order is as under:
