Mandatory notice before assessment enhancement is essential; failure to comply vitiates the appellate order and requires remand.

Enhancement of assessment without issuing the mandatory notice under Rule 50(3) of the Orissa Sales Tax Rules, 1947 was held to violate natural justice. The notice requirement is a mandatory procedural safeguard before any enhancement, and non-compliance vitiates the appellate order. On that basis, the Tribunal's order was set aside and the matter was remanded for fresh consideration in accordance with law.

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Issues: Whether the enhancement of assessment by the Tribunal without issuing notice under Rule 50(3) of the Orissa Sales Tax Rules, 1947 was sustainable.

Analysis: The assessment was enhanced without any notice to the assessee. The requirement of notice before enhancement is a mandatory procedural safeguard and also reflects the basic principle of natural justice. Non-compliance with that requirement vitiates the appellate order.

Conclusion: The Tribunal's order could not be sustained and was set aside. The matter was remanded to the Tribunal for fresh consideration in accordance with law.

Ratio Decidendi: Where enhancement of assessment is undertaken without the mandatory notice contemplated by the rules, the order is vitiated for breach of natural justice and must be set aside.

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