Natural justice in tax revision: denial of requested personal hearing and further evidence vitiated the enhanced assessment.

In a quasi-judicial revision for enhancement under section 21 of the Karnataka Sales Tax Act, 1957, the statutory opportunity to show cause had to be given effect through a meaningful personal hearing and, where sought, an opportunity to adduce further evidence. The assessee had specifically requested both, but was not heard before the revisional order was made. That denial breached natural justice and vitiated the enhanced assessment. The order was therefore quashed.

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Issues: Whether the revisional order enhancing the assessment could be sustained when the assessee, despite seeking a personal hearing and an opportunity to adduce further evidence, was not heard before the order was passed.

Analysis: The revisional power under section 21 of the Karnataka Sales Tax Act, 1957 is quasi-judicial in nature. Where sub-section (4) requires an opportunity to show cause against the proposed enhancement, that opportunity must, in the facts of the case, include a meaningful personal hearing, and may also require an opportunity to lead additional evidence. Since the assessee had specifically sought such hearing and additional opportunity, and it was denied, the order was passed in breach of natural justice.

Conclusion: The impugned order could not be sustained and was quashed for violation of natural justice.

Ratio Decidendi: In a quasi-judicial revision for enhancement, the statutory opportunity to show cause must be effectuated by a fair hearing, and denial of a requested personal hearing and opportunity to adduce evidence vitiates the order.

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