2003 (4) TMI 520 - AT - VAT and Sales Tax

Summary

Issues: Improper service of summons and pre-assessment notice leading to an assessment order being passed without proper notice.

Analysis:

1. The petitioner, engaged in timber business under the Tamil Nadu General Sales Tax Act, closed the business in February 2001 and duly informed the respondent. Despite reporting turnover and paying taxes for the assessment year 2000-2001, the petitioner received an assessment order in February 2003, which was illegible. The petitioner requested a clean copy but received no response.

2. The petitioner and partners did not receive any summons or pre-assessment notice. The respondent passed the assessment order without proper service, even though the petitioner had informed about business closure in January 2001. The pre-assessment notice was affixed without following the proper service methods under Rule 52 of the Tamil Nadu General Sales Tax Rules, 1959.

3. The petitioner argued that the assessment order was passed without proper notice. The respondent claimed that despite repeated summons, the petitioner did not produce accounts, leading to a best judgment notice served by affixture. However, the service methods prescribed by Rule 52 were not followed.

4. Rule 52(1) outlines the service of notices, requiring personal tendering, sending by registered post, and affixture only if other methods are impracticable. The respondent did not follow these methods before resorting to affixture due to a lack of service postage stamp, which cannot circumvent the rule. Proper service of pre-assessment notice is essential before resorting to best judgment assessment.

5. The Tribunal allowed the petition, setting aside the assessment order due to improper service of summons and pre-assessment notice. Consequently, another related petition did not survive. The order was to be punctually observed and executed by all concerned, issued in April 2003.