SALES TAX OFFICER, GANJAM & ANR. vs M/S. UTTARESWARI RICE MILLS

The Supreme Court held that under Section 12(8) of the Orissa Sales Tax Act, 1947, a notice for reassessment of escaped turnover must indicate that the sales tax authority has reason to believe that the turnover has escaped assessment. The Court clarified that while the statute does not explicitly require reasons to be stated in the notice, the authority must possess a basis for such belief. The High Court's quashing of the notice was overturned, establishing that the absence of stated reasons does not invalidate the notice if the authority has sufficient grounds for reassessment.