Limitation for recovery of dues

(1) No distraint shall be made, no suit shall be instituted and no prosecution shall be commenced in respect of any tax or other sum due to a Panchayat under this Act or any rule or bye-law, or order made under it after the expiration of a period of three years from the date on which the distraint might first have been made, a suit might first have been instituted or the prosecution might first have been commenced, as the case may be, in respect or such tax or sum: 194[Provided that in the case of assessment under sub-section (2) the above said period of three years shall be computed from the date on which destraint, suit or prosecution might first have been made, instituted or commenced, as the case may be, after making such assessment. (2)Notwithstanding anything contrary to this contained in this Act or the rules made there under, where for any reason, a person liable to pay any tax or fees leviable under this Act has escaped assessment, the Secretary may at any time within four years from the date on which such tax should have been assessed, serve on him a notice assessing the tax or fee due and demand the payment within fifteen days from the date of serving such notice and thereupon the provisions of this Act and the rules made there under shall apply as if the assessment of such tax or fee was made in time. (3)Where any tax or other amount due to a panchayat has been barred by limitation under sub-section (1), due to the default of taking steps at the appropriate time and it is found in a lawful enquiry that it was lost due to the default of any officer or offices, the amount so lost to the panchayat shall be realised with twelve percent interest thereon from such officer or officers.]

194[Provided that in the case of assessment under sub-section (2) the above said period of three years shall be computed from the date on which destraint, suit or prosecution might first have been made, instituted or commenced, as the case may be, after making such assessment. (2)Notwithstanding anything contrary to this contained in this Act or the rules made there under, where for any reason, a person liable to pay any tax or fees leviable under this Act has escaped assessment, the Secretary may at any time within four years from the date on which such tax should have been assessed, serve on him a notice assessing the tax or fee due and demand the payment within fifteen days from the date of serving such notice and thereupon the provisions of this Act and the rules made there under shall apply as if the assessment of such tax or fee was made in time. (3)Where any tax or other amount due to a panchayat has been barred by limitation under sub-section (1), due to the default of taking steps at the appropriate time and it is found in a lawful enquiry that it was lost due to the default of any officer or offices, the amount so lost to the panchayat shall be realised with twelve percent interest thereon from such officer or officers.]