Natural justice in tax case transfers requires notice and hearing before a Commissioner can shift proceedings between authorities.

A transfer of a sales tax case under Rule 81 of the U.P. Sales Tax Rules cannot be made by the Commissioner without notice and a reasonable opportunity of hearing, because the rule does not exclude natural justice and the transfer has civil consequences for the assessee. The Court applied the principle that procedural fairness is ordinarily implied unless expressly barred, and held that an order made without hearing would be arbitrary and vulnerable under Article 14. The transfer order issued without notice was therefore invalid, though the Commissioner remained free to pass a fresh order after following due process.

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Issues: Whether a transfer of a sales tax case under Rule 81 of the U.P. Sales Tax Rules can be made by the Commissioner without issuing notice to the assessee and whether such a transfer order, made without hearing, is sustainable.

Analysis: Rule 81 empowered the Commissioner of Sales Tax to transfer a case from one assessing authority to another, but it did not expressly exclude the requirement of notice or hearing. The Court relied on the principle that where an administrative order has civil consequences, the principles of natural justice are ordinarily read into the provision unless clearly excluded. A transfer from one district to another affects the assessee's position and therefore requires a reasonable opportunity to show cause before the order is made. Reading the rule without such a safeguard would make it arbitrary and discriminatory and vulnerable under Article 14 of the Constitution of India.

Conclusion: The transfer order made without notice to the assessee was invalid. The petition succeeded and the impugned transfer order was quashed, while leaving it open to the Commissioner to make a fresh transfer after giving notice and a reasonable opportunity of hearing.

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