Jurisdictionally invalid notice vitiates assessment and demand proceedings where the issuing authority lacks competence.

A show-cause notice issued by an Assistant Sales Tax Officer without jurisdiction was illegal because he was not competent to deal with cases above the prescribed turnover limit. The assessment completed on the basis of that invalid notice was therefore vitiated, and the consequential demand notice issued by the same incompetent authority was likewise unlawful. The assessment was set aside, and fresh assessment proceedings were directed to be initiated in accordance with law.

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Issues: Whether the assessment was valid when the notice to show cause and the consequential demand notice were issued by an authority lacking jurisdiction, and whether the assessment made without a valid notice could be sustained.

Analysis: The notice calling upon the assessee to show cause was issued by the Assistant Sales Tax Officer, though he was not competent to deal with cases beyond the prescribed turnover limit. The notice was therefore without jurisdiction and illegal. Since the competent assessing authority completed the assessment without issuing a valid notice, the assessment itself was vitiated. The demand notice was also issued by the same incompetent authority, reinforcing the illegality in the proceedings.

Conclusion: The assessment was illegal and was set aside. Fresh assessment proceedings were directed to be initiated according to law.

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