Service of demand notice upheld where representative appeared for the assessee and recovery of sales tax arrears continued.

Recovery proceedings for arrears of sales tax were upheld because service of the demand notice on Vasudeo was treated as sufficient in the circumstances. The Court accepted that he had appeared before the assessing authority for the petitioner and produced the books of account, which supported the conclusion that he was not a stranger to the proceedings. The petitioner's earlier arrest for realisation of the arrears and undertaking to pay the tax by instalments further weakened the objection to notice service. The challenge to recovery therefore failed, and the petition was dismissed in favour of the revenue.

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Issues: Whether recovery proceedings for arrears of sales tax could be invalidated for want of proper service of the demand notice on the petitioner.

Analysis: The petitioner challenged recovery on the ground that the demand notice was served on Vasudeo, who was said to be unauthorised to receive it. The Court accepted the respondents' explanation that Vasudeo had appeared before the assessing authority on behalf of the petitioner and had produced the books of account. It also noted that the petitioner had earlier been arrested for realisation of the arrears and had given an undertaking to pay the tax in instalments, which made the objection to service untenable.

Conclusion: The challenge to the recovery proceedings failed, as service on Vasudeo was treated as sufficient in the circumstances and the petition was dismissed in favour of the revenue.

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