Pre-assessment notice requirement and circular compliance can vitiate a sales tax assessment made without proper procedure.

Where the statutory or administrative procedure required a pre-assessment notice, failure to issue that notice, together with non-compliance with Circular No. 17 of 2007 on approval and signature requirements, rendered the assessment unsustainable. The assessment was completed without notice, and the assessment order was signed only by one person, which was treated as a breach of the circular. On that basis, the assessment and demand were quashed and the matter was remitted for fresh action in accordance with law.

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Issues: Whether an assessment made by the fast track team under Section 17D of the Kerala General Sales Tax Act, 1963 was liable to be quashed for want of a pre-assessment notice and non-compliance with Circular No. 17 of 2007.

Analysis: The assessment was completed without issuing a pre-assessment notice, though the petitioner disputed both the rate applied and the factual assertion that the authorised representative had accepted it. The governing judgment and the departmental circular required a pre-assessment notice to be issued, and the circular also indicated the manner in which such notices were to be approved and signed. The assessment order itself was signed only by one person, which was treated as a clear breach of the circular.

Conclusion: The assessment and demand were held unsustainable and were quashed, with directions to redo the matter in accordance with law.

Final Conclusion: The petitioner succeeded in obtaining annulment of the assessment proceedings, and the matter was remitted for fresh action in accordance with law.

Ratio Decidendi: Where the statutory or administrative procedure requires a pre-assessment notice, non-issuance of such notice, coupled with non-compliance with the governing circular, vitiates the assessment.

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