Transfer of assessment proceedings required before a second authority continues action under sales tax law.

Assessment proceedings and allied notices issued by a second Excise and Taxation Officer could not be continued merely on inherent jurisdiction where the dealer had already filed returns before another competent assessing authority and the assessment record had not been shown to be properly transferred. The court reasoned that allowing two authorities to apply their minds to the same assessment matter at different stages could prejudice the assessee and create conflicting conclusions, so fairness and natural justice required a transfer order before further action. The notices were not quashed, but further proceedings were permitted only after obtaining the necessary transfer order.

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Issues: Whether assessment proceedings and allied notices issued by an Excise and Taxation Officer, when the dealer had already filed returns before another competent assessing authority, could be pursued without a proper transfer order.

Analysis: The notices under section 14 and section 10(7) of the Punjab General Sales Tax Act were part of the assessment process and could affect the dealer's liability and possible penalty. Although the officer issuing the notices had inherent jurisdiction, the assessment records had not been shown to have been completely transferred to him. Where two authorities could otherwise apply their minds to the same assessment matter at different stages, the situation could prejudice the assessee and lead to inconvenience and conflicting conclusions. To accord with fairness and the rules of natural justice, further proceedings by the second authority should take place only after securing the necessary order transferring the proceedings.

Conclusion: The notices were not quashed, but the respondent was required to proceed further only after obtaining the necessary transfer order, which is in favour of the petitioner.

Ratio Decidendi: Even where an authority has inherent jurisdiction, assessment proceedings already initiated before one competent assessing authority should not be continued by another authority without a proper transfer of the proceedings, if fairness and natural justice require such transfer.

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