Ineffective service of assessment notice cannot trigger limitation when premises were under third-party control, making time-bar dismissal unsustainable.

Where an assessment notice was affixed at premises then under the control of a third party, that service was not treated as actual or effective service on the assessee, so limitation for the appeals could not be computed on that basis. The assessee had obtained copies of the assessment orders and filed appeals promptly after the assets were released, making the dismissal of the appeals as time-barred unsustainable. The order rejecting the appeals on limitation was quashed and the matter was remanded to the appellate authority for fresh decision on merits in accordance with law.

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Issues: Whether the dismissal of the appeals as time-barred was justified when the assessment notice was not actually served on the assessee and the unit was under the possession of the Karnataka State Financial Corporation.

Analysis: The assessment notice was issued and later served by affixture on the premises at a time when the assessee's manufacturing unit was in the possession of KSFC. The release of the assets occurred only later, and the assessee acted promptly thereafter by obtaining copies of the assessment orders and filing appeals within a short time. In these circumstances, the service effected at the premises could not be treated as actual or effective service on the company. The limitation period, therefore, could not be computed on the basis adopted in the impugned order. Since there was no real service of notice, the rejection of the appeals as delayed was unsustainable.

Conclusion: The order dismissing the appeals on limitation was quashed, and the matter was remanded to the appellate authority to decide the appeals on merits in accordance with law.

Final Conclusion: The assessee obtained relief against the order rejecting the appeals as time-barred, and the dispute was sent back for fresh adjudication on merits.

Ratio Decidendi: Where an assessment notice is not actually served on an assessee because the premises are under the control of a third party, limitation for appeal cannot be computed on the basis of such ineffective service, and dismissal of the appeal as time-barred is unsustainable.

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