Natural justice bars ex parte tax liability orders without proved notice or a fair opportunity of hearing.

An ex parte sales tax order could not be sustained where the assessee's knowledge of the hearing date was not established and no fair opportunity of hearing was given before tax liability was fastened. The HC applied the rule of natural justice that an adverse order affecting liability requires proper notice and an opportunity to be heard. Because the Tribunal had recorded no finding that the assessee knew of the hearing, the order was unsustainable. The matter was directed to be reheard afresh after giving both sides an opportunity of hearing.

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Issues: Whether the ex parte order of the Sales Tax Tribunal could be sustained when the assessee was not found to have knowledge of the hearing and was not afforded an opportunity of hearing before tax liability was fastened.

Analysis: The revision challenged the Tribunal's order passed in the assessee's absence. The Tribunal had not recorded any finding that the assessee knew of the hearing date. In such circumstances, the requirement of natural justice demanded that the assessee be given intimation and a fair opportunity of hearing before an adverse tax order was made. An order passed without such opportunity could not be sustained.

Conclusion: The ex parte order was held unsustainable and the matter was required to be heard afresh after giving both sides an opportunity of hearing.

Ratio Decidendi: An adverse tax order passed without affording the affected party notice or a fair opportunity of hearing, where knowledge of the hearing is not established, violates natural justice and cannot stand.

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