VAT Appeal No. 59 of 2010 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH VAT Appeal No. 59 of 2010 Date of decision: 1.12.2010 State of Punjab and another ...Appellants Versus M/s Liberty Rice Mills, Raja Sansi, Amritsar-II ...Respondent CORAM: HON'BLE MR.JUSTICE ADARSH KUMAR GOEL HON'BLE MR.JUSTICE AJAY KUMAR MITTAL Present: Mr. Jaswinder Singh, Deputy Advocate General, Punjab for the appellants. **** ADARSH KUMAR GOEL, J ( Oral) . This Appeal has been filed under Section 68(2) of the Punjab Value Added Tax Act, 2005 (in short “the Act”) against the order of the VAT Tribunal proposing following substantial questions of law:- “i) Whether the order passed by Ld. Tribunal is sustainable in law? ii) Whether the order passed by the Tribunal by relying upon judgment of this Hon'ble High Court in the case of M/s Malwa Cotton and Spinning Mills Ltd. which has also been challenged before Hon'ble Apex Court is sustainable in law? iii) Whether the Tribunal has rightly allowed the appeal of the respondent when the Commissioner was approached for grant of extension before the expiry VAT Appeal No. 59 of 2010 -2- of the period of limitation for granting extension in accordance with Section 11(10) of the Act, 1948? iv) Whether the provisions of Section 11(3) is directory in nature especially when the legislature has empowered the Commissioner to extend the period of limitation by exercising power under Section 11 (10) of the Act, 1948? v) Whether the Tribunal should have dismissed the appeal in limini which was filed without the compliance of statutory provision of clause (5) of section 20 of Punjab General Sales Tax Act, 1948? vi) Whether the Tribunal has powers to entertain the appeal of the respondent without deposit of 25% of the amount of the demand in view of this Hon'ble High Court in the case of Emrald International Ltd. Vs. State of Punjab? vii) Whether the Tribunal has traveled beyond its powers in entertaining the appeal without compliance of statutory provisions of section 20(5) of the Act of 1948?” The assessing authority made assessment under Section 11 of the Punjab General Sales Tax Act, 1948 vide order dated 15.4.2008 for the assessment year 2003-04. Appeal against the order of assessment was dismissed for want of pre-deposit but on further appeal, the Tribunal set aside the assessment on the ground that the same was barred by limitation. Reliance was placed on VAT Appeal No. 59 of 2010 -3- judgment of this Court in State of Punjab Vs. Malwa Cotton Spinning Mills Ltd. (2009) 25 VST 216 P&H. We have heard learned counsel for the appellant. It is not disputed that the limitation for making assessment under Section 11 of the Punjab General Sales Tax Act, 1948 was upto 30th April, 2007 unless extension was granted. The extension was granted beyond the said date i.e. on 1.6.2007, even though the application seeking extension was beyond the expiry of limitation. In Shreyans Industries Limited Vs. State of Punjab and others (2008) 18 VAT and Service Tax Cases 493 (P&H) this Court has held that in absence of extension of time before expiry of limitation, the assessment will be hit by bar of limitation. In view of above, the view taken by the Tribunal is as per decision of this Court. No substantial question of law arises. Accordingly, the appeal is dismissed. (Adarsh Kumar Goel) Judge December 01,2010 (Ajay Kumar Mittal) Pka Judge