265. Taxable person was unable to determine the rate of tax applicable on the services supplied by him. He made an application for payment of tax on provisional basis and executed bond and security on receiving the order on provisional basis on 17 July. Further after 9 months an assessment order was received by the taxable person mentioning higher rate of tax. The taxable person alleged that the period of limitation has expired and the order raising higher rate is not valid. Discuss.
As per section 60 final assessment order shall be passed within 6 months from communication of order therefore the taxable person is right.
However extension upto 6 months by AC/JC shall be granted on sufficient cause and further 4 year extension by commissioner shall be granted to issue final assessment order beyond the limitation period.