Natural justice in assessment proceedings: orders set aside for failure to furnish relied-upon records and grant effective hearing.

Assessment orders based on statements and records obtained from an oil company were set aside because the assessee was not shown to have received all relied-upon material or an effective opportunity to verify those records before the orders were passed. The Department did not substantiate its claim that sufficient opportunity had been given, and the availability of an alternative remedy did not bar intervention where breach of natural justice was established. Allegations that appeal papers were fabricated were treated as a separate matter and did not sustain the assessments. The matters were remitted for fresh assessment after furnishing the relied-upon supply vouchers and giving a reasonable hearing.

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Issues: Whether the assessment orders were liable to be set aside for violation of the principles of natural justice and the matters remitted for fresh assessment after supplying the relied-upon records.

Analysis: The assessment was based on statements and records obtained from the oil company, but the petitioner was not shown to have been furnished with all the material relied upon or given an effective opportunity to cross-check those records before the orders were passed. The claim of sufficient opportunity was not substantiated by the Department with proof, and the availability of an alternative remedy did not preclude interference where breach of natural justice was made out. The objection regarding the alleged fabrication of appeal papers was held to be a matter that could be dealt with independently and did not justify sustaining the impugned assessments.

Conclusion: The assessment orders were set aside and the matters were remitted to the assessing officer for fresh orders after furnishing the relied-upon supply vouchers and granting a reasonable opportunity of hearing.

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