Duly served assessment orders are essential for VAT recovery; unproved service invalidates bank attachment and enforcement action.
Recovery under the A.P. VAT regime cannot be sustained unless the foundational assessment notices and assessment orders are shown to have been duly served on the assessee. The record did not prove service of either the show-cause notices or the assessment orders; asserted service by affixture was unsupported, and mere return of unserved registered notices was insufficient. On that basis, the bank attachment and withdrawal from the assessee's account were set aside because recovery action based on unserved orders was invalid, while the Revenue's right to proceed lawfully after due service remained intact.
Issues: (i) Whether the assessment notices and assessment orders under the A.P. VAT regime were shown to have been served on the assessee. (ii) Whether the bank attachment and withdrawal of money from the assessee's account could be sustained in the absence of proved service of the assessment orders.
Issue (i): Whether the assessment notices and assessment orders under the A.P. VAT regime were shown to have been served on the assessee.
Analysis: The record did not show proof of service of either the show-cause notices or the assessment orders. The asserted mode of service by affixture at the business premises was not supported by any material. Mere return of registered notices unserved was insufficient to establish valid service.
Conclusion: The assessment orders were not proved to have been served on the assessee.
Issue (ii): Whether the bank attachment and withdrawal of money from the assessee's account could be sustained in the absence of proved service of the assessment orders.
Analysis: Since service of the assessment orders was not established, recovery action based on those orders could not be sustained. As the amount in the account had already been withdrawn, continuation of the attachment served no purpose, and the assessee was left free to pursue statutory remedies against the assessment orders.
Conclusion: The bank attachment was set aside and the assessee was permitted to operate the bank account and pursue remedies in accordance with law.
Final Conclusion: The writ petition succeeded to the extent of invalidating the recovery action based on unserved assessment orders, while preserving the Revenue's right to proceed lawfully after due service and subject to any remedy pursued by the assessee.
Ratio Decidendi: Recovery proceedings cannot be sustained unless the foundational assessment orders are shown to have been duly served on the assessee.
TaxTMI 
AI Drafter ✕
TaxTMI 
