1981 (9) TMI 254 - HC - VAT and Sales Tax

Summary

Issues: Validity of service of orders of assessment under rule 84(1) of the Orissa Sales Tax Rules

The judgment by the Orissa High Court addressed the issue of whether there was appropriate service of orders of assessment on the assessee as required by rule 84(1) of the Orissa Sales Tax Rules. The assessee had appealed against the original assessment, claiming there was no valid service of the order. The first appellate authority dismissed the appeal on the ground of limitation, stating that the appeal was filed late. The authority relied on the report of the process peon indicating service on the assessee. However, the Court noted that the procedure followed for serving the order was not through registered post but as if it were a summons under the Code of Civil Procedure. The Court examined the relevant rules under Order 5 of the Code, specifically rules 17 and 19, which outline the procedure for service when acknowledgment is refused or the defendant cannot be found. The Court observed that the Sales Tax Officer did not follow the prescribed procedure, leading to doubts about the validity of service. The Court agreed with the assessee's contention that there was no valid service of the order of assessment, and therefore, the dismissal of the appeal on grounds of limitation was incorrect. The Tribunal's decision was also deemed erroneous for upholding the dismissal based on the same reasoning. The Court ruled in favor of the assessee, stating that there was no valid service of the orders of assessment under rule 84(1) of the Orissa Sales Tax Rules. The assessee was awarded costs, and the hearing fee was assessed at Rs. 100. The judgment was delivered by Chief Justice Misra and Justice Patnaik, with Justice Patnaik concurring with the decision.