Reassessment notice must disclose a real basis for reopening; vague allegations cannot sustain jurisdiction.

Reassessment under the Kerala General Sales Tax Act was invalid because the reopening notice did not disclose a real basis for alleging escapement of tax and did not give a meaningful opportunity to object. The notice only suggested that the concessional rate "would appear to be not correct", while the later justification relied on in reassessment was absent from the notice itself. The court held that the statutory condition precedent for reopening was not met, so the reassessment proceedings were vitiated from inception and could not stand. The challenge to the reopening succeeded, and the entire reassessment was quashed.

---

---

Issues: Whether reassessment under section 19 of the Kerala General Sales Tax Act, 1963 was valid when the notice did not disclose a proper basis for escapement of tax and did not furnish a meaningful opportunity to object.

Analysis: Section 19 permits reopening only where escapement of assessment is properly identified and the dealer is given a reasonable opportunity of being heard. The notice issued in this case merely suggested that the concessional rate of tax "would appear to be not correct" and did not state any clear reason for reopening. A later justification introduced in the reassessment proceedings was not reflected in the notice itself. The Court held that the statutory condition precedent for reassessment was not satisfied, and the reassessment proceedings were therefore vitiated at their inception.

Conclusion: The reassessment was jurisdiction and could not stand; the challenge to the reopening succeeded.

Final Conclusion: The entire reassessment proceedings were quashed because the statutory requirements for initiating action under section 19 were not met.

Ratio Decidendi: A reassessment notice under a provision requiring escapement to be identified and a reasonable opportunity of hearing must disclose a real basis for reopening, failing which the proceedings are without jurisdiction.

---