Service by affixation and immediate recovery fail when statutory alternatives and written reasons are not shown.

Service of a show cause notice by affixation is valid only after the statutory alternative modes are first found impracticable; because that prerequisite was not shown, the notice was invalid and the demand based on it was illegal. Recovery of the demanded amount cannot be initiated on the same day as the demand order before expiry of the statutory three-month period unless the proper officer records written reasons for shortening the time in the interest of revenue; as no such reasons were recorded, the immediate recovery was illegal and liable to be set aside. The note also records that the impugned demand and recovery were quashed, with restitution directed and liberty reserved to proceed afresh in accordance with law.

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Issues: (i) Whether the show cause notice was validly served when service was effected by affixation without first establishing that the other modes of service under the statute were impracticable; (ii) whether recovery of the demanded amount could validly be made on the same day as the demand order, before expiry of the statutory period of three months and without reasons recorded in writing.

Issue (i): Whether the show cause notice was validly served when service was effected by affixation without first establishing that the other modes of service under the statute were impracticable.

Analysis: The statutory framework requires service of notice through the modes prescribed under the service provision, and affixation is to be used only when the other modes are not practicable. The notice in question was served only by affixation, and it was not shown that the preceding modes had been found impracticable. This rendered service contrary to the statutory mode of service and inconsistent with the requirements of fair procedure.

Conclusion: The show cause notice was not validly served and the demand order founded on it was illegal.

Issue (ii): Whether recovery of the demanded amount could validly be made on the same day as the demand order, before expiry of the statutory period of three months and without reasons recorded in writing.

Analysis: The recovery provision grants the taxable person three months from service of the order to pay the amount before recovery proceedings are initiated. A shorter period can be fixed only if the proper officer records reasons in writing in the interest of revenue. Recovery was made on the very day of the order and no written reasons were recorded. The statutory precondition for immediate recovery was therefore not satisfied.

Conclusion: The recovery was illegal and liable to be set aside.

Final Conclusion: The impugned demand and recovery were quashed, and restitution of the recovered amount was directed, while leaving the State free to proceed again in accordance with law.

Ratio Decidendi: Service by affixation is valid only after the statutory alternatives are found impracticable, and recovery before the expiry of the statutory waiting period is permissible only on recorded reasons in writing.

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