Natural justice bars turnover enhancement without notice or hearing; rectification cannot be used to increase assessment secretly.

The appellate authority could not enhance assessed turnover without disclosing its intention, reasons, and giving the dealer an opportunity to respond, because the power of enhancement under the U.P. Trade Tax Act must comply with natural justice. An order styled as rectification was also invalid where it effectively increased the assessment without a reasonable hearing, as Section 22 requires such opportunity before rectification with that effect. The enhancement was therefore held unsustainable, the Tribunal's view was set aside, and the matter was remanded for fresh disposal according to law.

---

---

Issues: Whether the appellate authority could enhance the assessed turnover without putting the dealer to notice and whether such enhancement could be sustained as rectification without affording an opportunity of hearing.

Analysis: The power of enhancement under the U.P. Trade Tax Act cannot be exercised in breach of natural justice. Even if a separate written notice is not indispensable, the authority must disclose its intention to enhance the turnover and the reasons for doing so and must afford the dealer an opportunity to respond. The order characterised as rectification was also unsustainable because Section 22 specifically requires a reasonable opportunity of hearing before any rectification having the effect of enhanced assessment is made.

Conclusion: The enhancement made without notice or hearing was invalid, and the Tribunal erred in upholding it. The revision was, therefore, allowed and the matter was remanded for fresh disposal of the appeal in accordance with law.

---