Valid service of VAT notice and limitation determined the fate of an ex parte assessment under Haryana VAT law.

Statutory notice under Rule 79 of the Haryana VAT Rules was found not to have been validly served because the identity of the alleged recipient was not established and the dealer denied any such employment relationship. The Tribunal therefore treated the ex parte assessment as unsupported by proper service and held that any assessment thereafter was time-barred under Section 15(2) of the Haryana VAT Act. The High Court found no error in those factual findings and also noted production of VAT C-4 forms and tax invoices for a substantial part of the turnover, supporting input tax credit.

---

---

Issues: Whether the statutory notice under Rule 79 of the Haryana Value Added Tax Rules, 2003 was validly served on the dealer so as to sustain the ex parte assessment, and whether the assessment could still be maintained as time-barred.

Analysis: The Tribunal found, on facts, that the identity of the person on whom the notice was allegedly served was not established and that the dealer had denied the employment of the stated recipient. It further noticed that earlier notices had not led to any action, which weakened the claim of proper service. On that basis, the Tribunal held that the statutory notice was not served in accordance with Rule 79, and that an assessment thereafter would be barred by limitation under Section 15(2) of the Haryana Value Added Tax Act, 2003. The High Court found no error in these factual findings. It also noted that the dealer had produced VAT C-4 forms and tax invoices for a substantial part of the turnover, supporting the entitlement to input tax credit.

Conclusion: The notice was not validly served, the assessment had become time-barred, and the revenue's challenge failed.

---