Valid service of tax notice requires compliance with amended service rules; notice only on counsel was insufficient.

After the amendment to Rule 77-A of the U.P. Sales Tax Rules, service of notice on a dealer's lawyer or authorised agent was no longer permitted. Because the notice under Section 21 was served only on the assessee's counsel in 1981, when the amended rule was already in force, such service was invalid. The Tribunal's contrary view ignored the amended text and involved an error of law, so the proceedings initiated on that basis could not be sustained.

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Issues: Whether notice under Section 21 of the U.P. Sales Tax Act, served on the assessee's counsel after the amendment to Rule 77-A of the U.P. Sales Tax Rules, constituted valid service on the dealer, and whether the proceedings initiated on that basis were sustainable.

Analysis: Rule 77-A, as it stood prior to amendment, permitted service of process or notice on a lawyer, accountant or authorised agent appointed by the dealer in writing. After the amendment with effect from 4 December 1979, the language authorising such service was deleted. On the date of service in 1981, the amended rule was in force, so the earlier mode of service on counsel was no longer available. The Tribunal's view that notice on the counsel amounted to valid service therefore ignored the amended rule and resulted in an error of law.

Conclusion: Service of notice on the assessee's counsel was not valid service under the amended rule, and the proceedings under Section 21 could not be sustained.

Ratio Decidendi: Once the rule permitting service of notice on a lawyer or authorised agent is deleted, notice served only on counsel is not valid service on the dealer for initiating proceedings under the Sales Tax Act.

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