Prima facie escapement is required before reopening sales tax proceedings; a mere enquiry notice cannot confer jurisdiction.

Proceedings under section 21 of the U.P. Sales Tax Act required the assessing authority to first form a prima facie opinion, on material already before it, that turnover had escaped assessment. A notice issued only to conduct further or fishing enquiries did not satisfy that jurisdictional condition and amounted to an invalid assumption of power. The order sheet entry showing that notice was proposed for additional enquiry therefore indicated that section 21 had been invoked for an impermissible purpose, so the initiation of proceedings was invalid and the assessee succeeded.

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Issues: Whether proceedings under section 21 of the U.P. Sales Tax Act could be validly initiated without a prima facie conclusion of escapement of turnover, and whether a notice issued only for making enquiries amounted to an invalid assumption of jurisdiction.

Analysis: The recorded order in the assessment file showed that notice under section 21 was proposed because further enquiry was considered necessary. The jurisdiction under section 21 required the assessing authority to first form a prima facie opinion, on the basis of material before it, that turnover had escaped assessment. A notice issued merely to enable fishing or roving enquiries did not satisfy that condition. The mention of enquiry in the order sheet therefore indicated that jurisdiction had been assumed for an impermissible purpose and not on a lawful prima facie satisfaction of escapement.

Conclusion: The initiation of proceedings under section 21 was invalid and the assessee succeeded.

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