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of <h1>Invalid notice service under U.P. Sales Tax Act leads to assessment being deemed unsustainable.</h1> The court held that the service of the notice under section 21 of the U.P. Sales Tax Act was invalid due to non-compliance with Rule 77. It emphasized ... - Issues:1. Validity of service of notice under section 21 of the U.P. Sales Tax Act.2. Whether knowledge of proceedings under section 21 can substitute for valid notice.3. Interpretation of Rule 77 regarding modes of service of notice.4. Impact of telegram sent by the assessee on the proceedings.Detailed Analysis:1. The primary issue in this case pertains to the validity of the service of a notice under section 21 of the U.P. Sales Tax Act. The case involved a situation where the notice was initially served by affixation on the dealer without attempting other prescribed modes of service. The court emphasized that service by affixation can only be used if other modes are impracticable, as per Rule 77. Since the notice was served by affixation without exhausting other methods, it was deemed invalid, rendering the subsequent assessment under section 21 unsustainable.2. Another crucial aspect addressed in the judgment is whether mere knowledge of the proceedings under section 21 can be equated to the actual service of a valid notice. The court clarified that while awareness of the proceedings is essential, it cannot replace the formal service of a notice as mandated by law. Therefore, the court held that the mere knowledge of the proceedings, even if demonstrated through other means like a telegram, cannot substitute for the proper service of a notice.3. The interpretation of Rule 77 regarding the modes of service of a notice was pivotal in determining the validity of the service in this case. The rule outlines various methods of serving a notice, with affixation being the last resort if other modes are not feasible. The court highlighted that in this instance, the department directly resorted to affixation without exploring other viable options, contravening the rule and invalidating the service of the notice.4. Additionally, the impact of a telegram sent by the assessee on the proceedings was considered. The court noted that the telegram, sent in response to a different notice related to separate proceedings, did not alter the fact that the service of the notice under section 21 was invalid. The court emphasized that the telegram, even if indicating awareness of certain proceedings, could not rectify the deficiency in the service of the notice under section 21.In conclusion, the court ruled that the service of the notice under section 21 was not valid due to non-compliance with Rule 77, emphasizing the importance of proper service of notices in tax proceedings. The judgment underscored that mere knowledge of the proceedings cannot replace the formal service requirements, ensuring procedural fairness and adherence to legal standards.
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