CA Intermediate · Corporate and Other Laws · Interpretation of Statutes

A statute says: 'A notice under this Act may be served by registered post.' The department sends a notice by ordinary speed post, which the assessee admits receiving on time. The assessee argues the notice is invalid. Under the distinction between mandatory and directory provisions, which position is most appropriate?

The notice is valid. The word 'may' is ordinarily enabling or directory rather than mandatory, and the purpose of service is met because the assessee admits timely receipt. A departure from the suggested mode of service therefore does not make the notice invalid.

1. AThe notice is invalid because 'may' always creates a mandatory requirement for the mode stated
2. BThe notice is invalid because every procedural provision is mandatory
3. CThe notice is valid only if the assessee pays a penalty
4. DThe word 'may' is generally directory or enabling, so a different mode that achieves actual service need not make the notice invalidCorrect