2005 (1) TMI 662 - HC - VAT and Sales Tax

Summary

Issues:
1. Proper service of notice under section 21 of the U.P. Trade Tax Act, 1948 for the assessment year 1996-97 under the Central Sales Tax Act, 1956.

Analysis:

The revision under section 11 of the U.P. Trade Tax Act, 1948 challenged the Tribunal's order related to the assessment year 1996-97 under the Central Sales Tax Act, 1956. The assessing authority initially passed an assessment order declaring the applicant non-assessable. However, subsequent revelations led to a proceeding under section 21 of the Act being initiated regarding the endorsement on the RR. The Tribunal's order remanded the case back to the assessing authority for a fresh assessment, acknowledging the service of the notice on March 30, 1982, as proper. The applicant contested this, arguing that the service was not in accordance with the law.

Upon review, the court examined the provisions of rule 77 of the U.P. Trade Tax Rules, 1948, detailing the modes of service of notices. The court noted that the service of the notice dated March 30, 1982, was not in compliance with rule 77. The order-sheet entries did not reflect satisfaction on the part of the assessing authority before directing service by affixation, as required by the rule. Additionally, the report by the process-server did not meet the requirements of sub-rule (5) of rule 77, lacking essential details. The court emphasized that proper service of the notice under section 21 was crucial for a valid proceeding, citing a previous Full Bench decision.

Consequently, the court held that the notice under section 21 had not been served in accordance with the law, leading to the quashing of the proceeding under section 21. The revision was allowed, setting aside the Tribunal's order.

In conclusion, the judgment focused on the procedural aspects of serving a notice under section 21 of the U.P. Trade Tax Act, emphasizing compliance with rule 77 for valid service. The court's decision highlighted the significance of proper service in upholding the integrity of assessment proceedings under the tax laws.