Fair opportunity in quasi-judicial assessment: order quashed for breach of natural justice

Assessment finalised under Rule 6(5) of the Central Sales Tax Rules was quashed because the dealer was not given a fair opportunity to file objections or produce books of account. The authority completed the assessment on the same day as the request for extension, before the time for assessment had expired, and without prior notice of rejection of adjournment. Since assessment proceedings are quasi-judicial, the assessing authority was required to afford a reasonable opportunity to contest the proposal before finalising the order. The order was therefore unsustainable for violation of natural justice and was set aside.

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Issues: Whether the assessment order finalised under Rule 6(5) of the Central Sales Tax Rules was liable to be quashed for want of a fair opportunity and violation of natural justice.

Analysis: The assessment was completed on the same day on which the dealer sought extension of time to file objections and produce books of account. The time available for completing the assessment had not yet expired, and no prior notice was given regarding rejection of the request for adjournment. Assessment proceedings are quasi-judicial in nature, and the authority was bound to afford a reasonable opportunity to contest the proposal and produce materials before finalising the assessment.

Conclusion: The assessment order was unsustainable for violation of principles of natural justice and was rightly quashed.

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