THE COMMISSIONER OF SALES TAX, U.P. vs M/S. BHAGWAN INDUSTRIES (P) LTD. LUCKNOW

The Supreme Court upheld the High Court's ruling that the initial notices issued by the sales tax officer were preliminary and did not constitute formal notices under Section 21 of the U.P. Sales Tax Act, which would trigger the one-year limitation for reassessment. The Court clarified that the reassessment made on March 19, 1963, was valid as it was within one year of the proper notice served on March 24, 1962. Furthermore, the Court found that the assessing authority had reasonable grounds to believe that turnover had escaped assessment, thus validating the initiation of proceedings under Section 21.