Natural justice before reassessment sanction: prior notice was required, and ex parte permission was invalid.

Prior notice and an opportunity of hearing were treated as implicit before authorisation of reassessment under section 21(2) of the U.P. Trade Tax Act, 1948 where the reassessment period had expired and the dealer had acquired a valuable statutory right. Because the provision did not expressly exclude natural justice, the Commissioner could not validly grant sanction without hearing the dealer. On the facts, the reassessment permission was granted without notice, so it was held invalid and liable to be quashed; contrary authorities were considered inapplicable.

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Issues: Whether permission for reassessment under section 21(2) of the U.P. Trade Tax Act, 1948 could be granted without giving the dealer prior notice or opportunity of hearing, and whether such permission was invalid for breach of natural justice.

Analysis: The reassessment period had expired, and the dealer had acquired a valuable right on expiry of the statutory period. The provision did not expressly exclude observance of natural justice. In such a situation, the requirement of prior notice and opportunity of hearing was treated as implicit in the statutory scheme before the Commissioner authorised reassessment. The impugned sanction had been granted without such notice, and the contrary authorities were held inapplicable on the facts.

Conclusion: The permission for reassessment granted without prior notice was invalid and liable to be quashed.

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