1995 (11) TMI 383 - HC - VAT and Sales Tax

Summary

Issues:
- Validity of service of notice on the petitioner
- Whether the ex parte decision of the Tribunal should be set aside for fresh adjudication

Analysis:
The High Court of Orissa addressed the issue of whether there was valid service of notice on the petitioner, also known as "the assessee," in a writ application concerning appeals filed by the Revenue against the petitioner. The Tribunal had disposed of the matter ex parte after the petitioner failed to appear on the scheduled date. The petitioner claimed that there was no service of notice, leading to the ex parte decision. The Tribunal initially directed an inquiry into the service of notice, considering the petitioner's affidavit and the report from the Sales Tax Officer. However, the Tribunal concluded that there was valid service of notice without waiting for the report from the postal department. The High Court analyzed the relevant provisions of the Orissa Sales Tax Act, Rules, and Tribunal Regulations, emphasizing the necessity of notice to parties before hearing an appeal. The Court highlighted Rule 58, which mandates sending notice of hearing by registered post to the appellant or respondent. The Court noted that the person who received the notice was not authorized, as per the report from the Sales Tax Officer, to accept the notice on behalf of the petitioner. Despite this, the Tribunal concluded that the notice was validly served, which the Court found to be a presumptuous conclusion. The Court criticized the Tribunal for not considering crucial evidence and not awaiting the postal department's report before making a decision.

The Court held that the Tribunal's decision was erroneous and lacked substantial evidence to support the conclusion of valid service of notice. The Court set aside the order rejecting the application for restoration and directed the Tribunal to re-hear the application. The writ application was allowed, emphasizing the importance of proper service of notice and fair adjudication in legal proceedings.

In a separate concurring judgment by Justice P.C. Naik, the writ application was allowed in line with the decision of Justice A. Pasayat. The judgment highlights the significance of ensuring procedural fairness and proper service of notice in legal proceedings, ultimately leading to the direction for the Tribunal to re-hear the application for restoration.