Validity of reassessment proceedings must be separately adjudicated when the legal objection was left undecided earlier.

A legal objection challenging the validity of reassessment proceedings may be raised before the Tribunal where it was not decided at the earlier appellate stage, and the Tribunal must adjudicate it on merits after hearing both sides. The assessee had raised a challenge to initiation under section 21 of the U.P. Sales Tax Act, 1948, but that contention remained undecided by the first appellate authority. The record did not show that the point had not been urged earlier, and the appeal ground reflected a challenge based on mere change of opinion.

---

---

Issues: Whether the assessee's preliminary objection to the legality of initiation of proceedings under section 21 of the U.P. Sales Tax Act, 1948, was required to be considered by the Tribunal.

Analysis: The assessee had raised two contentions before the first appellate authority, but only one was decided. The other contention, challenging the validity of proceedings under section 21, remained undecided. The record did not show that the objection had not been urged before the Tribunal, and the ground of appeal indicated a challenge based on the principle that section 21 could not be invoked on a mere change of opinion. A contention not decided at the earlier appellate stage could be raised before the Tribunal.

Conclusion: The preliminary objection was required to be adjudicated by the Tribunal after giving both parties an opportunity of being heard.

Ratio Decidendi: A legal objection going to the validity of reassessment or analogous proceedings, if not decided at the earlier appellate stage, may be raised before the Tribunal and must be separately adjudicated on merits.

---