Valid service of VAT scrutiny notice through a gatekeeper upheld where the notice was proved served at business premises.

Service of a VAT N-2 notice for scrutiny assessment was upheld where the assessee's accountant stated on the record that the notice had been served through the company's gatekeeper. The later affidavit retracting that statement was rejected, especially as it was filed on the day the Tribunal decided the matter. The gatekeeper was treated as a person regularly employed in connection with the business, so service fell within Rule 79 of the Haryana Value Added Tax Rules, 2003. On those facts, the assessee failed to show any infirmity in the assessment proceedings or any substantial question of law, and the challenge was dismissed.

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Issues: Whether the VAT N-2 notice initiating scrutiny assessment was validly served in terms of Rule 79 of the Haryana Value Added Tax Rules, 2003 and whether any substantial question of law arose from the challenge to such service.

Analysis: The challenge centred on the alleged non-service of the statutory notice required for scrutiny assessment. The record showed that the accountant of the assessee had appeared before the assessing authority on several dates during the assessment proceedings and had stated that the notice had been served through the gatekeeper of the company premises. The subsequent affidavit retracting that statement was disbelieved, particularly because it was made on the very day the Tribunal decided the matter. The gatekeeper was treated as a person regularly employed in connection with the business, bringing the service within the scope of Rule 79. The facts were distinguished from the cited precedent where service had been effected on a friend of the assessee.

Conclusion: The VAT N-2 notice was held to have been validly served, and the assessee failed to establish any infirmity in the assessment proceedings or any substantial question of law. The challenge was rejected and the appeals were dismissed.

Ratio Decidendi: Service of a statutory notice on a gatekeeper at the business premises, when shown to be a person regularly employed in connection with the business, constitutes valid service under Rule 79 of the Haryana Value Added Tax Rules, 2003.

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