Prior notice before rejecting turnover was mandatory; non-issuance vitiated the sales tax assessment and led to remand.

Prior notice under the second proviso to Rule 41(7) of the U.P. Sales Tax Rules was a mandatory condition before the Sales Tax Officer could reject an assessee's turnover. As no such notice was issued, the assessment action was procedurally defective and the orders based on that rejection could not stand. The revision was allowed, the impugned orders were set aside, and the matter was remitted for fresh action in accordance with law after compliance with the notice requirement.

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Issues: Whether the Sales Tax Officer could reject the assessee's turnover without issuing the notice required by the second proviso to Rule 41(7) of the U.P. Sales Tax Rules.

Analysis: The assessment record showed that no notice contemplated by the second proviso to Rule 41(7) was issued to the assessee. Compliance with that proviso was a legal requirement before the turnover of sales could be rejected. In the absence of such notice, the assessment action was procedurally defective and the orders passed by the authorities below could not stand.

Conclusion: The rejection of turnover without the required notice was invalid and the assessee succeeded.

Final Conclusion: The revision was allowed, the orders of the authorities below were set aside, and the matter was remitted for fresh action in accordance with law after compliance with the notice requirement.

Ratio Decidendi: Where the statute requires prior notice before rejection of turnover, non-issuance of such notice vitiates the assessment action and the resulting orders.

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