V.P.MOHAN KUMAR, J. - (1.) A common question of law arises for consideration in these writ petitions. It is with respect to the scope of application of Section 12(6)(b) of the Karnataka Sales Tax Act, 1957 hereinafter referred to as 'the Act'.
(2.) THE averments in all the cases are that the assessment is being completed, admittedly beyond the period contemplated under Section 12(5) of the Act. The said section reads thus : '(5) No assessment under this section for any year shall be made after a period of three years from the date on which the return under Sub -section (1) for that year is submitted by a dealer : Provided that assessment proceedings relating to any year ending before the date of commencement of the Karnataka Sales Tax (Amendment) Act, 1985 in respect of which a return under Sub -section (1) has been submitted, before such commencement shall be completed within a period of four years from such commencement : Provided further that nothing in this sub -section limiting the time within which assessment may be made, shall apply to an assessment made in consequence of, or to give effect to, any findings, directions, or orders made under Sections 20, 21, 22 or 22A or any judgment or order made by any court.' The section makes it clear that the statutory bar of limitation will debar the completion of assessment on the lapse of three years from the date on which the return was filed by the assessee under Section 12(1) of the Act. In all these cases, it is not in dispute that three years have lapsed since the last day of filing of the return by the assessee before the assessment was made under Section 12(3) of the Act. The main defence raised by the department is the plea based on Section 12(6) of the Act and in particular Section 12(6)(b). The said sub -section reads as under : '(b) the time during which the assessment has been deferred in any case or cases by the Commissioner for reasons to be recorded in writing shall be excluded ;' Sub -clause (b) of Section 12(6) in brief postulates a deferment of the assessment at the instance of the authority named therein on the basis of an order made recording reason in that behalf. We are concerned with the scope and ambit of this sub -section. I have heard the learned counsel for the petitioners Mr. R.N. Narasimha Murthy and Mr. B.P. Gandhi. I have also heard Mr. D'Sa, learned Government Advocate.
(3.) THE clear mandate of Section 12(5) is that on the expiry of the period mentioned therein, the assessing authority loses its right to assess the assessee. It means the right to initiate the proceedings under the Act and call upon the assessee to pay the tax gets extinguished. This provision is comparable to Section 3 of the Limitation Act, 1963. With the passage of the time, the right to enforce the statutory right vested with the authority gets extinguished. The only saving that is postulated under the Sales Tax Act is, what is provided under Section 12(6)(a) and (b) of the Act. Section 12(6)(a) enlarges the period of limitation by excluding the period during which the assessment proceedings were 'deferred' due to the intervention of an order of a court or any other authority ; likewise Section 12(6)(b) enlarges the period of limitation by excluding the period during which the assessment proceedings had been 'deferred' in view of deferring of the assessment in respect of a class or classes of cases relating to the assessee by the authority named therein for reasons to be recorded. Sub -section (6)(b) means that where for reasons to be. recorded in writing any assessment or class of assessment has been deferred such period will be excluded in reckoning the period under Section 12(5) of the Act.;