Procedural fairness in sales tax recovery requires notice and hearing before coercive action under section 13(3)(b).

In proceedings under section 13(3)(b) of the Karnataka Sales Tax Act, an assessee must be given notice and an opportunity to be heard before further coercive action is taken. The earlier view that notice was unnecessary was displaced by a later Division Bench ruling, which required procedural fairness before continuation of such action. An order dispensing with notice and issuing a fine levy warrant was therefore unsustainable, and the matter was remitted for fresh action after notice and hearing.

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Issues: Whether, in a proceeding under section 13(3)(b) of the Karnataka Sales Tax Act, 1957, the assessee was entitled to notice and an opportunity to make submissions before further coercive action was taken.

Analysis: The earlier view that no notice was necessary was found to stand displaced by a subsequent Division Bench decision, which held that before further action is taken in proceedings under section 13(3)(b), the assessee must be afforded an opportunity to be heard. Dispensing with notice and proceeding directly to issue a fine levy warrant was therefore inconsistent with the requirement of procedural fairness.

Conclusion: The order dispensing with notice and issuing the fine levy warrant was unsustainable. The petitioner's challenge succeeded and the matter was sent back for fresh action after notice and opportunity of hearing.

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