Mandatory service requirements for reassessment notices: failure to follow prescribed modes and record reasons vitiates proceedings.

Service of a reassessment notice under section 21 of the U.P. Trade Tax Act is valid only if the prescribed modes under rule 77 are followed. Rule 77 permits affixation only after the authority records reasons showing that service by tender or registered post cannot be effected, and the process-server's report must state the circumstances of affixation and identify witnesses or the person identifying the premises. Where the record shows no proper attempt at ordinary service, no recorded satisfaction for affixation, and a deficient process-server's report, the notice is not validly served and the reassessment proceeding cannot be sustained.

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Issues: Whether the notice issued for initiation of reassessment proceedings under section 21 of the U.P. Trade Tax Act, 1948 was validly served in accordance with rule 77 of the U.P. Trade Tax Rules, 1948.

Analysis: Rule 77(1) permits service by tender, registered post, and, only where the authority has reasonable grounds to believe that service cannot be effected by those modes and records reasons therefor, service by affixation. Rule 77(5) further requires the process-server's report to state the circumstances of affixation and the identifying person and witnesses, if any. The record did not show a proper attempt at service by the ordinary modes, did not disclose any recorded satisfaction or reasons before directing affixation, and the process-server's report failed to comply with the mandatory requirements of rule 77(5). Since valid service of notice is a condition precedent for a lawful proceeding under section 21, the defect went to the root of the reassessment.

Conclusion: The notice was not validly served, the proceeding under section 21 could not be sustained, and the assessee succeeded.

Ratio Decidendi: Before resorting to service by affixation, the authority must record reasons showing inability to effect service by the ordinary modes prescribed by the rules, and non-compliance with the mandatory service requirements vitiates the proceeding where valid notice is a condition precedent.

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