Section 21 - The Legal Chamber

The Supreme Court held that Section 21 of the Assam General Sales Tax Act, 1993, which permits a four-year extension for assessment with the Commissioner's sanction, applies only where no assessment was ever made within the original limitation period. It cannot be invoked to resurrect an assessment that was already completed and subsequently declared time-barred under Section 19. The Court emphasized a strict interpretation of fiscal statutes, ruling that the revenue cannot tax a subject by inference if the case falls outside the provision's four corners. Facts Of The Case: The case involved M/s. Shiv Steel challenging reassessment orders for the financial years 2003-2004, 2004-2005, and 2005-2006 under the Assam General Sales Tax Act, 1993. The initial assessments for these years were c...

The Supreme Court held that the suit against the State Financial Corporation was not maintainable due to non-compliance with the mandatory notice under Section 80 CPC. The decree was declared a nullity as it erroneously applied the Interest on Delayed Payments Act, 1993, to a pre-enactment transaction and fastened liability without privity of contract. Execution proceedings were quashed. Facts Of The Case: In 1985, Respondent No. 1, M/s. Vigyan Chemical Industries, supplied raw materials to Respondent No. 2, an industrial unit. Due to a loan default, the Appellant, Odisha State Financial Corporation (OSFC), took possession of Respondent No. 2's unit in 1987 under the State Financial Corporations Act, 1951. In 1988, Respondent No. 1 filed a recovery suit for its unpaid dues. OSFC was impl...

Tag: Section 21

Supreme Court Rules: Time-Barred Tax Assessments Cannot Be Revived

Supreme Court Quashes Decree Against Odisha Corp, Clarifies Law on Interest for Pre-1992 Transactions