Personal hearing in assessment is required when sought; natural justice breach can override the alternate remedy rule.

An assessee who specifically requests a personal hearing before finalisation of assessment is entitled to be heard, and an assessment order passed without granting that opportunity is unsustainable. The cited circular required a fair opportunity to the assessee and reflected the rule that personal hearing must be provided when the statute so requires or when sought by the assessee, especially where an adverse finding is proposed. The objection based on alternate statutory remedy does not bar writ intervention where violation of natural justice is alleged, since breach of natural justice is a recognised exception to exhaustion of remedies. The assessment was set aside and remitted for fresh consideration with personal hearing.

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Issues: Whether an assessee is entitled to a personal hearing before finalisation of assessment, and whether the existence of an alternate statutory remedy bars a writ petition where natural justice is alleged to have been violated.

Analysis: The assessment was challenged on the ground that the petitioner had requested a personal hearing but the assessing authority proceeded to pass the order without affording it. The circular dated 20 April 2001 required fair opportunity to the assessee and stated that personal hearing need not be given unless the statute so requires or the assessee asks for it. The earlier Division Bench view, relied upon as reinforcing the circular, held that when a dealer seeks personal hearing and an adverse finding is proposed, the assessee should be heard before the order is passed. The objection based on alternate remedy was rejected because violation of principles of natural justice is a recognised exception to the rule of exhaustion of statutory remedies.

Conclusion: The petitioner was entitled to a personal hearing, and the assessment order passed without such hearing could not be sustained. The order was set aside and the matter was remitted for fresh consideration with an opportunity of personal hearing.

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