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January 2012

(2011) 40 VST 72 (P&H) Swastik Pipes Ltd. v. State of Haryana

By C. B. Thakar | Advocate
G. G. Goyal, Janak Vaghani | Chartered Accountants
Reading Time 2 mins
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Assessment — Dealer participated in assessment — Failure to issue Notice — Not aausing any prejudice — Not a ground for invalid assessment — Section 28(5) of Haryana General Sales Tax Act, 1973.

Facts
The assessment was finalised with co-operation of dealer upon furnishing of information by him, after giving reasonable opportunity of hearing. The dealer raised objection that without issuing statutory notice purchase tax assessment cannot be finalised. The dealer filed reference before the High Court against the decision of the Tribunal confirming the assessment to decide whether second/ separate show-cause notice is mandatory for the levy of purchase tax u/s.28(5) of the Act.

Held

U/s.28(5) of the Act, the assessing authority is obliged to serve notice to the dealer for framing assessment. In this case, the assessment was finalised with the co-operation of the dealer, who had supplied all the relevant information necessary for the quantification of purchase tax liability to the assessing authority. A reasonable opportunity of being heard was given to the dealer. The requirement of section 28(5) of the Act extends only to grant reasonable opportunity of hearing, which is satisfied in this case. Non-issue of notice or mistake in the issue of notice or defect in service of notice does not affect the jurisdiction of the assessing authority, if otherwise reasonable opportunity of being heard is granted. In this case neither any prejudice is caused, nor have the provisions of section 28(5) of the Act been violated. Therefore the High Court answered the reference in favour of the Revenue.

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