Provisional assessment notice sustained where material suggested unworthy turnover and jurisdictional facts could be tested during proceedings.

A provisional assessment notice under section 25(1)(iii) of the U.P. Value Added Tax Act, 2008 was upheld because the assessing authority had material suggesting that the disclosed turnover was not worthy of credence. The notice concerning construction and sale of flats was treated as a valid initiation of proceedings, and the existence of jurisdictional facts could be examined through the assessee's reply. Since assessment had not yet been finally made, the absence of a completed assessment did not invalidate the commencement of proceedings. The writ challenge failed and the notice was sustained.

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Issues: Whether the show cause notice for provisional assessment under section 25(1)(iii) of the U.P. Value Added Tax Act, 2008 was without jurisdiction for want of jurisdictional facts.

Analysis: Provisional assessment under the provision can be initiated on the basis of material available to the assessing authority when it appears that the disclosed turnover is not worthy of credence. The notice in question referred to the construction and sale of flats and called upon the petitioner to show cause. At the stage of initiation, the authority had not finally exercised the power of assessment, and the existence or non-existence of the relevant facts was still open to be tested on the petitioner's reply. The absence of a completed assessment at that stage did not show that no jurisdictional fact existed to commence the proceedings.

Conclusion: The challenge to the notice failed and the writ petition was dismissed, in favour of the Revenue.

Ratio Decidendi: A show cause notice for provisional assessment is sustainable where the assessing authority has some material suggesting undisclosed or unworthy turnover, and the existence of jurisdictional facts can be examined in the course of the proceedings.

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