(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:[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.
