Reassessment notice validity: reasons need not be stated in the notice itself unless the statute expressly requires disclosure.

A reassessment notice issued under section 12(8) of the Orissa Sales Tax Act is not invalid merely because it omits the reasons for the authority's belief that turnover has escaped assessment or been under-assessed. The provision is a machinery measure: it requires the existence of the statutory precondition of reason to believe before action is taken, but it does not expressly require those reasons to be set out in the notice itself. If reassessment relies on adverse material, that material must be disclosed to the dealer with an opportunity to respond. The notice is therefore not quashed solely for non-mention of reasons.

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Issues: Whether a notice issued under section 12(8) of the Orissa Sales Tax Act, 1947 is invalid merely because it does not state the reasons for the belief that turnover has escaped assessment or been under-assessed.

Analysis: Section 12(8) permits reassessment where there is reason to believe that turnover has escaped assessment or has been under-assessed, and the allied rule and form show that the notice is intended to call for a return and require attendance. The provision is machinery-oriented and does not expressly require the notice itself to contain the reasons. The reasoning under the analogous reassessment provision in the Indian Income-tax Act, 1922 supports the view that communication of the reasons for initiating reassessment is not a statutory condition for the validity of the notice. The existence of the requisite reason is a condition precedent to action, but the reasons need not be recited in the notice. If the authority relies on material against the dealer in reassessment, that material must be disclosed to the dealer and an opportunity given to explain it.

Conclusion: The notice is not liable to be quashed merely for non-mention of reasons, and the challenge to its validity fails.

Ratio Decidendi: A reassessment notice issued under a machinery provision is valid if the statutory precondition for action exists, even though the notice does not recite the reasons, unless the statute expressly requires such disclosure.

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