Garnishee notice validity in sales tax recovery unaffected by failure to forward requisition copy to dealer

In recovery proceedings for sales tax arrears, forwarding a copy of the requisition to the dealer under section 26(1) was held not to be a condition precedent to the validity of a garnishee notice. The provision was treated as part of the recovery machinery, authorising a written requisition to persons holding monies due to the assessee so that the amounts may be paid towards arrears. The challenge based on non-service of the requisition copy therefore failed, and the notice was not invalidated on that ground. The Court also noted that setting aside the notice would have afforded no practical relief because the amount had already been paid to the department under the requisition.

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Issues: Whether non-forwarding of a copy of the requisition to the dealer, as contemplated by section 26(1), invalidated the garnishee notice issued for recovery of sales tax arrears.

Analysis: The notice was challenged on the footing that the copy of the requisition had not been sent to the dealer at his last known address. The Court held that the provision requiring forwarding of a copy was not framed as a condition precedent to the valid exercise of the power under section 26(1). The section forms part of the recovery machinery and authorises a written requisition to persons holding monies due to the assessee so that the amounts may be paid over towards arrears. The Court also noted that quashing the notice would produce no practical relief because the amount had already been paid to the department under the requisition.

Conclusion: The notice was not invalid for want of forwarding a copy to the dealer, and the petition failed.

Ratio Decidendi: In recovery proceedings under section 26(1), forwarding a copy of the requisition to the dealer is not a condition precedent to the validity of the garnishee notice.

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