Natural justice and cross-examination rights: no breach found where no request was made before assessment, and tax penalty stood upheld.

Natural justice was not breached where the assessee was informed that the assessment rested on market committee information, but never sought cross-examination of the officer before the assessing authority. The Court held that the right to cross-examine arises when specifically requested and refused; a mere denial of the material in reply is insufficient. On that basis, the assessing authority could proceed on the record before it, and the appellate authorities were not required to grant a fresh opportunity not sought at the original stage. The assessment and penalty were therefore upheld and the revision petition dismissed.

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Issues: Whether the assessment and penalty under the Karnataka Sales Tax Act were liable to be set aside for violation of natural justice on the ground that the assessee was not afforded cross-examination of the market committee officer whose information was relied upon, when no such request had been made before the assessing authority.

Analysis: The assessment was based on information received from the market committee and the assessee was put on notice of that basis in the proposition notice. The Court distinguished the precedent requiring opportunity for cross-examination, holding that such opportunity becomes necessary when it is specifically sought and is refused. Here, the assessee merely denied the information in reply and did not ask the assessing authority to summon the officer or permit cross-examination. In those circumstances, the assessing authority was entitled to proceed on the material before it, and the appellate authorities were not bound to grant a fresh opportunity which had never been sought at the original stage.

Conclusion: The contention of violation of natural justice failed, and the assessment as well as the penalty were upheld. The revision petition was dismissed.

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