Law of limitation-whether applies to Govt dues as well
Anil Kr Garg
(Querist) 06 January 2011
This query is : Resolved
Kindly advise whether the law of limiation (3 yrs) also applies to Govt dues. I have 2 specific issues:-
(1) Municipal Corpn issues notice for property tax from beginning (12 yrs) for my factory land. I'd paid taxes till 2 yrs ago but 've misplaced file as factory is closed for 2 yrs and there is no staff. They want me to prove that taxes were paid or pay all taxes from allotment of land 12 yrs ago. If limitation is applicable, they cannot demand more than 3 yrs taxes. Pls advise.
(2) When Industrial land was allotted, my business was an SSI unit and hence, Premium applicable to SSI units was charged. 10 yrs ago, we became medium scale and cancelled SSI registration. When I am selling factory land, DIC today demands difference of land premium between SSI and medium scale applicable in year 2000 today. They never wrote to me on the subject till today. If limitation is applicable, they cannot demand the amount now. Pls advise.
Thanking you,
nishad
(Expert) 07 January 2011
Please see the amendment happended to S.28 of the Indian Contract Act..Limitation period for govt claims is 30 years
