Invalid service of tax revision notice and limitation bar prevented a fresh reassessment under the Tamil Nadu sales tax framework

Invalid service of a pre-revision notice and revisional assessment order by affixture, without compliance with Rule 52 of the Tamil Nadu General Sales Tax Rules, 1959, vitiates the reassessment process and breaches natural justice. Where that defect is accepted, any fresh revision must still be initiated within the limitation period under Section 16 of the Tamil Nadu General Sales Tax Act, 1959. On the stated facts, a later reassessment attempt relating to the 1980-81 assessment year was treated as time-barred, and the earlier Revenue precedent was distinguished because initiation in that case had itself been within time.

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Issues: Whether the reassessment directions could survive when the pre-revision notice and assessment order were held to have been served contrary to Rule 52 of the Tamil Nadu General Sales Tax Rules, 1959, and whether a fresh revision was barred by limitation under Section 16 of the Tamil Nadu General Sales Tax Act, 1959.

Analysis: The assessment and appellate records showed that the pre-revision notice had been served by affixture after the dealer had closed business, without compliance with the procedure prescribed by Rule 52 of the Tamil Nadu General Sales Tax Rules, 1959. The appellate authority had already found that the notice and the revisional assessment order were not validly served and that the assessment was vitiated for breach of natural justice. Once that finding was accepted, any fresh initiation had to be within the statutory period available under Section 16 of the Tamil Nadu General Sales Tax Act, 1959. As the relevant assessment year was 1980-81 and the appellate order recording invalid service was passed long thereafter, a further notice or reassessment exercise would fall outside limitation. The earlier decision cited for the Revenue was distinguished because, on its facts, initiation itself had been made within time.

Conclusion: The service of the pre-revision notice and revisional assessment order was invalid, the proposed fresh reassessment was time-barred, and the assessee succeeded.

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