Separate notice for purchase tax assessment not mandatory where dealer had hearing and participated without shown prejudice

A separate show-cause notice under section 28(5) of the Haryana General Sales Tax Act was not mandatory where the dealer knew purchase tax assessment was underway, participated in the proceedings, supplied material for quantification, and received a reasonable opportunity of hearing. The Court applied the principle that omission of a notice, or defect in notice, does not invalidate an assessment if no prejudice is shown and fair opportunity has otherwise been given. On those facts, the assessment was not vitiated for want of a separate statutory notice, and the challenge failed.

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Issues: Whether, in the facts and circumstances of the case, a second or separate show-cause notice was mandatory for levy of purchase tax under section 28(5) of the Haryana General Sales Tax Act, 1973.

Analysis: Section 28 of the Haryana General Sales Tax Act, 1973 distinguishes between assessment on returns, assessment after notice where returns are found unsatisfactory, and best judgment assessment where returns are not furnished. Rule 26 of the Haryana General Sales Tax Rules, 1975 prescribes notice in Form ST 25 when assessment is proposed. On the facts, the dealer was aware that purchase tax assessment was being undertaken, participated in the proceedings, supplied the material required for quantification, and was afforded a reasonable opportunity of being heard. The absence of a separate notice under section 28(5) did not cause prejudice. The governing principle, drawn from the cited Supreme Court authorities, is that non-issue of notice, or defect in notice, does not invalidate the assessment if reasonable opportunity of hearing has otherwise been given.

Conclusion: A separate notice under section 28(5) was not mandatory in the circumstances, and the assessment was not vitiated for want of such notice. The question was answered against the assessee and in favour of the Revenue.

Ratio Decidendi: Where the dealer has been given a reasonable opportunity of being heard and has participated in the assessment proceedings, omission to issue a separate statutory notice does not, by itself, defeat the assessing authority's jurisdiction or invalidate the best judgment assessment absent demonstrated prejudice.

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