Natural justice in revised assessments: nondisclosure of relied-on material and denial of hearing can invalidate reassessment.

A revised assessment under the Tamil Nadu General Sales Tax Act, 1959 cannot be sustained when it is reopened on a pre-revision notice without supplying the material relied upon and without granting a meaningful opportunity of hearing. The High Court noted that the earlier assessment had been completed on accepted accounts, and held that revision of a completed assessment must comply with statutory procedure and the principles of natural justice. Because the basis of the revision was not disclosed and the assessee was denied a fair chance to respond, the revised assessment order was set aside and the writ petition was allowed.

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Issues: Whether the revised assessment order was liable to be quashed for breach of the principles of natural justice, including failure to furnish the material relied upon and failure to give an opportunity of hearing, while reopening a completed assessment under the Tamil Nadu General Sales Tax Act, 1959.

Analysis: The assessment had been completed earlier on the basis of accepted accounts, but was later reopened through a pre-revision notice and revised without supplying the materials relied upon and without affording a hearing. The challenge was examined in the light of the requirement that an assessing authority, while revising a completed assessment, must act fairly and comply with the statutory framework and the principles of natural justice. The absence of disclosure of the basis of revision and the denial of a meaningful opportunity to respond rendered the order unsustainable.

Conclusion: The revised assessment order was liable to be set aside and the writ petition was allowed.

Ratio Decidendi: A revised assessment cannot be sustained when it is made without furnishing the material relied upon and without giving the assessee a fair opportunity of hearing, as such action violates the principles of natural justice.

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