Foundational audit notice requirements under Odisha Entry Tax law must be served before assessment, levy, and penalty can stand.

An assessment under Section 9C of the Odisha Entry Tax Act, 1999 depends on service of the statutory notice in Form E-30 and the audit visit report in Form E27, because the audit report is the foundational material for initiating proceedings. Where those documents are not served on the dealer, the dealer is deprived of the basis of the demand and cannot effectively answer the case. The resulting non-compliance with the prescribed procedure goes to the validity of the assessment itself, and the levy of entry tax and the consequential penalty cannot be sustained. On that reasoning, the assessment was invalid and relief was granted to the assessee.

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Issues: Whether an assessment under Section 9C of the Odisha Entry Tax Act, 1999 is valid when the statutory notice in Form E-30 and the audit visit report in Form E27 are not served on the dealer, and whether the resulting levy and penalty can be sustained.

Analysis: Section 9C of the Odisha Entry Tax Act, 1999 makes the audit visit report the foundational material for initiation of proceedings. In the absence of service of the prescribed notice and the accompanying audit visit report, the dealer is deprived of the basic material on which the demand is founded and cannot meaningfully meet the case against it. Such non-compliance with the statutory procedure goes to the validity of the assessment itself. Without that foundational compliance, the levy of entry tax and the consequential penalty cannot stand.

Conclusion: The assessment framed under Section 9C of the Odisha Entry Tax Act, 1999 was invalid, and the levy of entry tax as well as the penalty were unsustainable; the decision is in favour of the assessee.

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