SETH, J. - (1.) AT the instance of the assessee, this court required the Additional Revising Authority, Sales Tax, Varanasi, to state the case and to refer the following question for its opinion : "Whether the assessment order for the year 1952-53 was barred by limitation ?"
(2.) THE assessee was a partnership-firm, which in the year 1952-53, dealt in bullion and ornaments. Its assessment for that year was completed by the Sales Tax Officer, Varanasi, on 23rd June, 1962. According to section 21(2) of the U.P. Sales Tax Act, as it stood at the relevant time, no assessment order under the Act, in respect of a particular year, could be made after the expiry of four years from the end of that year. However, the explanation added to that sub-section provided that in computing the period of limitation provided for making the assessment, the period during which the assessment proceedings relating to the dealer remained stayed under the order of any civil or other competent court had to be excluded. As assessment for the year 1952-53 was completed by the Sales Tax Officer long after the expiry of four years after the end of that year, the assessee filed an appeal before the appellate authority, inter alia, on the ground that the assessment order was barred by time. It appears that during the pendency of the assessment proceedings, which had been initiated within time, the assessee filed a petition under article 226 of the Constitution before the High Court and on 22nd July, 1954, obtained an order staying the assessment proceedings. That stay order remained in force up to 30th April, 1959. Accordingly, in view of the explanation to section 21(2) of the U.P. Sales Tax Act, after excluding the period during which the assessment proceedings remained stayed under the orders of the High Court, the assessment order could be made by 3rd February, 1962. However, the assessee again obtained an order from the Judge (Revisions), Sales Tax, on 16th December, 1960, staying further assessment proceedings pending against him. That order was ultimately vacated on 23rd January, 1961. The order vacating the stay order was communicated to the Sales Tax Officer on 7th May, 1961. The Judge (Appeals) held that, according to the explanation to sub-section (2) to section 21, the period between 16th December, 1960, and 7th May, 1961, had also to be excluded in computing the period of four years within which the assessment could be made. Accordingly, the assessment could be completed by 27th June, 1962. The assessment having been finalised on 23rd June, 1962, was within limitation.
(3.) IN revision, the additional revising authority affirmed the view taken by the appellate authority and upheld the assessment order made by the Sales Tax Officer. At the instance of the assessee, and under the directions of this court, the revising authority has stated the case and referred the aforesaid question for the opinion of this court.;