Mandatory pre-decisional notice required before appellate enhancement of sales turnover; adverse orders set aside for breach of procedure.

Rule 251(1) of the West Bengal Sales Tax Rules, 1995 required the appellate or revisional authority to serve Form 54 notice and afford an opportunity to object before relying on information leading to an adverse enhancement of escaped turnover. The general appellate power under Section 79(2)(b) did not dispense with that mandatory procedural safeguard. Because no Form 54 notice was served, the enhancement of gross sales could not stand, and the appellate and revisional orders were set aside with rehearing directed before the appellate authority.

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Issues: Whether the appellate authority could enhance gross sales and make an adverse addition in appeal without serving the dealer a show-cause notice in Form 54 under Rule 251 of the West Bengal Sales Tax Rules, 1995, and whether the appellate and revisional orders were liable to be set aside.

Analysis: Rule 251(1) requires the appellate or revisional authority, when it seeks to rely on information that may lead to an adverse decision on escaped turnover, to serve notice in Form 54 and afford an opportunity of objection or representation. The appellate authority invoked Section 79(2)(b) of the West Bengal Sales Tax Act, 1994, but that provision only enlarges appellate power to consider matters arising from the proceedings; it does not dispense with the procedural safeguard prescribed by the Rules. The procedure under Rule 251(1) was treated as mandatory and in conformity with natural justice and fair play. Since no such notice had been served, the enhancement of gross sales could not be sustained.

Conclusion: The appellate enhancement without notice was unlawful, and the appellate and revisional orders were set aside with a direction for rehearing before the appellate authority.

Ratio Decidendi: Where the rules prescribe a specific procedure, especially a pre-decisional notice before an appellate authority may make an adverse enhancement, that procedure must be strictly followed and cannot be bypassed by reliance on the general appellate power.

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