Reasonable opportunity of hearing requires a clear post-objection hearing notice before escaped turnover assessment can be finalised.

A composite notice under section 25(1) of the Kerala Value Added Tax Act, 2003 was held inadequate where it merely called for objections and generally referred to a right to be heard. The proviso requires a reasonable opportunity of hearing before escaped turnover assessment is finalised, and that safeguard is not met unless the notice clearly specifies the date, time and place of hearing after objections are filed. Because the notice did not secure an effective post-objection hearing, the assessment order was invalid, the assessment was set aside, and the matter was remitted for fresh consideration after proper compliance.

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Issues: Whether a composite notice under section 25(1) of the Kerala Value Added Tax Act, 2003, which invites objections and generally mentions a right to be heard, is sufficient to satisfy the statutory requirement of giving the dealer a reasonable opportunity of being heard before making an escaped turnover assessment.

Analysis: The proviso to section 25(1) makes the grant of a reasonable opportunity of hearing a mandatory condition before finalising assessment. A notice that merely calls for objections and states that the assessee may seek a hearing on any convenient day does not, by itself, secure an effective hearing after the objections are filed. The statutory safeguard requires clarity as to the date, time and place of hearing so that the assessee may substantiate the reply and the assessing authority may consider the explanation before proceeding further. The composite notice in the case was therefore held to be inadequate to meet the statutory mandate.

Conclusion: The composite notice was insufficient, the assessment order was invalid for breach of the hearing requirement, and the matter had to be reconsidered after issuing a proper hearing notice.

Final Conclusion: The assessment was set aside and the matter was remitted for fresh consideration after compliance with the statutory requirement of an effective hearing.

Ratio Decidendi: Where the statute requires a reasonable opportunity of being heard before escaped turnover assessment, a composite show-cause notice alone is not enough unless it effectively secures a clear post-objection hearing by specifying the hearing particulars.

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