Successful Petition Challenges Assessment Notice Timing, Emphasizes Right to Notice and Hearing

Union Home Products Ltd. Versus Assistant Commissioner of Commercial Taxes (Assessments) -II and Others

Union Home Products Ltd. Versus Assistant Commissioner of Commercial Taxes (Assessments) -II and Others - [1999] 116 STC 486 (Kar) The petition challenged the initiation of assessment proceedings due to a pre-assessment notice issued beyond the limitation period. The court held that the Commissioner's power to defer assessment cannot be exercised arbitrarily and must be for valid reasons. As no notice was given to the petitioner before deferring the assessment, the proceedings were quashed. The petitioner's right to be heard before altering their position was emphasized. The petition was allowed, and the rule made absolute.