Premature tax recovery notice invalid where demand period had not expired under provisional assessment rules.

Recovery under section 11-A of the Rajasthan Sales Tax Act, 1954 could not be initiated before expiry of the payment period granted in a valid demand notice issued after provisional assessment under section 7-B. Rule 31 required service of a demand notice allowing at least fifteen days for payment, unless a shorter period was justified in exceptional circumstances, and section 11-A operated only after default in complying with that notice. Because the composite notice was issued before the time allowed had expired, the recovery action was premature and not in conformity with section 11-A read with Rule 31; the notice was therefore invalid and quashed.

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Issues: Whether a notice under section 11-A of the Rajasthan Sales Tax Act, 1954 could be issued before the expiry of the time granted in the demand notices raised pursuant to provisional assessment under section 7-B of the Rajasthan Sales Tax Act, 1954.

Analysis: The demand raised under section 7-B became payable forthwith, but Rule 31 of the Rajasthan Sales Tax Rules, 1955 required service of a demand notice granting the dealer at least fifteen days for payment, unless a shorter period was justified in exceptional circumstances. The notice under section 11-A could operate only after failure to pay the amount due, and the composite notice in question was issued before the expiry of the time allowed under the demand notices. The Court therefore held that the recovery action was premature and not in conformity with section 11-A read with Rule 31.

Conclusion: The notice under section 11-A was invalid and was rightly quashed.

Final Conclusion: The writ petition succeeded, and the recovery notice was set aside as premature.

Ratio Decidendi: Recovery under the demand provisions could be initiated under section 11-A only after the dealer had failed to comply with a validly served demand notice and after the period allowed for payment had expired.

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