Premature reassessment notice without required rules was invalid; later rule notification did not cure the defect.

A reassessment notice issued before the State framed the rules required by an earlier binding judicial direction was treated as invalid. The subsequent notification of the Orissa Sales Tax (Amendment) Rules, 2010 did not cure the defect in the premature notice. The Court also noted that the assessee could still challenge the reassessment and contest the validity of the later rules, including on limitation and other available statutory defences, if fresh proceedings were initiated after compliance with the rules.

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Issues: Whether a reassessment notice issued before the framing of the rules directed by the earlier judgment was sustainable in law, and whether the assessee was entitled to challenge the subsequent rules and raise limitation and other defences in the reassessment proceedings.

Analysis: The earlier judgment had specifically directed that reassessment could proceed only after the State framed rules under its rule-making power. The impugned notice was nevertheless issued before those rules were notified. The Court held that, in the absence of compliance with the earlier directions, no fresh notice of hearing could validly be issued. The subsequent notification of the Orissa Sales Tax (Amendment) Rules, 2010 did not cure the defect in the impugned notice. At the same time, the Court left it open to the State to issue a fresh notice in light of the notified rules and preserved the assessee's right to contest the reassessment and the validity of the rules, including on the ground of limitation.

Conclusion: The reassessment notice dated 20 November 2007 was invalid and was set aside, while the State was permitted to proceed afresh after the rules were notified, subject to the assessee's available objections.

Final Conclusion: The writ petition succeeded to the extent of quashing the premature reassessment notice, but the reassessment process was left open to be pursued again in accordance with the subsequently notified rules and the assessee's statutory defences.

Ratio Decidendi: A reassessment notice cannot be sustained where the governing rules required for such action had not been framed in compliance with an earlier binding judicial direction.

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