Valid service by acknowledged receipt and conditional reopening of assessments on partial payment of disputed tax

Service of show cause notices and assessment orders may be treated as valid where the original record shows receipt with the company seal and an acknowledged signature; a bare claim that an employee may have received the documents is insufficient to dislodge due service. The court also indicated that, where an assessment raises multiple issues and the assessee seeks to place objections and documents before the Assessing Officer, limited procedural relief may be granted on payment of 15% of the disputed tax within the stipulated time, after which the impugned orders may be treated as show cause notices and the matter redone in accordance with law.

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Issues: (i) whether service of the show cause notices and assessment orders on the petitioner could be treated as valid; and (ii) whether the petitioner should be granted a conditional opportunity to contest the assessments by making a partial payment.

Issue (i): whether service of the show cause notices and assessment orders on the petitioner could be treated as valid

Analysis: The original records showed receipt of the notices by the petitioner with the company seal affixed and an acknowledged signature. In those circumstances, service could not be disbelieved on the mere assertion that the documents might have been received by an employee who later left the company. The surrounding record supported due service, and the challenge on this ground was not accepted.

Conclusion: Valid service was held to be established against the petitioner.

Issue (ii): whether the petitioner should be granted a conditional opportunity to contest the assessments by making a partial payment

Analysis: As the assessment involved multiple issues and the petitioner sought an opportunity to place objections and documents before the Assessing Officer, the Court granted a limited reopening route. That relief was made conditional on payment of 15% of the disputed tax within the stipulated time, over and above any amount already recovered, after which the impugned orders could be treated as show cause notices and the assessment could be redone in accordance with law.

Conclusion: A conditional opportunity to re-agitate the assessments was granted, failing which the writ petitions would stand dismissed.

Final Conclusion: The petitioner's challenge failed on the question of service, but limited procedural relief was granted to enable a fresh statutory hearing upon compliance with the pre-payment condition.

Ratio Decidendi: Where the company seal and an authorised signature acknowledge receipt of notices, valid service may be presumed, and a court may grant only a conditional opportunity to reopen assessment proceedings on terms.

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