Improper service of assessment notice and denial of hearing vitiated the proceedings, requiring the orders to be set aside.

Where a statute prescribes a special mode of service, notice sent by ordinary post does not attract the statutory presumption of service unless the prescribed requirements are met. In the absence of proof of actual receipt, the assessment notice was not duly served, and a subsequent reminder that was taken back by the officer could not cure the defect. As the assessees had no effective notice or real opportunity of hearing before assessment, the proceedings were vitiated for breach of natural justice, and the assessment and appellate orders were set aside.

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Issues: Whether the assessment proceedings were vitiated for want of proper service of notice and denial of opportunity of hearing to the assessees.

Analysis: The notice purportedly issued by ordinary post did not attract the statutory presumption of service under the rule governing postal service, which contemplated proper addressing, prepayment and posting by registered post. In the absence of proof of receipt, the notice could not be treated as duly served. The subsequent reminder, though received by one of the partners, was taken back by the Sales Tax Officer and therefore ceased to be effective. The applicants thus had no proper notice of the proceedings before assessment and no real opportunity to present their case. Such want of notice and hearing vitiated the assessment proceedings.

Conclusion: The assessment order and the appellate orders could not stand against the applicants and were set aside.

Ratio Decidendi: Where a special statutory mode of service is prescribed, service cannot be presumed outside that mode, and an assessment made without proper notice and opportunity of hearing is invalid for breach of natural justice.

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