Proceedings against a non-existent amalgamated company are void ab initio; assessment and attachment notices were set aside.

Recovery and coercive tax proceedings issued against a company after it had ceased to exist on amalgamation are void ab initio and without jurisdiction. Notices, assessment steps and attachment action directed to the transferor entity after amalgamation cannot sustain recovery against a non-existent person. On that basis, the impugned assessment orders, show-cause notice and attachment notices were set aside insofar as they proceeded against the amalgamated company. The ruling did not determine the merits of the underlying tax liability and was confined to the validity of proceedings initiated against the non-existent entity.

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Issues: Whether recovery and coercive proceedings, including assessment, show-cause and attachment notices, issued against a company that had ceased to exist upon amalgamation were sustainable in law.

Analysis: The initial demand notices and the consequent proceedings were issued against the transferor company after it had ceased to exist pursuant to amalgamation. A notice or recovery action issued to a non-existent entity is void ab initio and without jurisdiction. The relief was therefore confined to the recovery proceedings initiated on the basis of notices issued to the non-existent company, without adjudicating the merits of the underlying tax liability.

Conclusion: The impugned assessment orders, show-cause notice and attachment notices, to the extent they pursued recovery against the non-existent amalgamated company, were set aside and the challenge succeeded.

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