Improper service of pre-assessment notice vitiated sales tax assessment and demand for breach of statutory notice requirements.

Improper service of the pre-assessment notice under Rule 52 of the Tamil Nadu General Sales Tax Rules, 1959 rendered the sales tax assessment unsustainable. The record did not show strict compliance with the prescribed modes of service: notice was attempted at the business premises, then sent to the residential address, and the assessment proceeded on endorsement of affixture and postal dispatch without clear proof of effective service. That irregular service failed to satisfy the statutory notice requirement before assessment and deprived the dealer of a proper opportunity to object. The assessment order and consequent demand were therefore quashed for breach of Rule 52 and natural justice, with a fresh opportunity directed.

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Issues: Whether the assessment order and consequent demand were liable to be quashed for non-service or improper service of pre-assessment notice in breach of Rule 52 of the Tamil Nadu General Sales Tax Rules, 1959 and the principles of natural justice.

Analysis: The assessment was founded on inspection materials and recovery of slips, but the record did not show strict compliance with the prescribed modes of service under Rule 52. The notice was first attempted at the business premises, then sent to the residential address, and the assessment proceeded after endorsement of service by affixture and postal dispatch without clear proof of effective service. Such irregular service did not satisfy the statutory requirement of notice before assessment and denied the dealer a proper opportunity to object.

Conclusion: The assessment order was vitiated and was rightly quashed for violation of Rule 52 and the principles of natural justice. The petitioner succeeded, and a fresh opportunity was directed before proceeding further.

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