Natural justice in revenue adjudication requires supply of relied-upon documents and a real opportunity to defend before adverse decision.

Revenue adjudication was found procedurally unfair where relied-upon documents were not fully supplied, some non-relied-upon documents were not returned, and the assessee was therefore denied an effective opportunity to rebut the show-cause notices. Mere inspection of records was held insufficient when the documents needed for defence had not been furnished. The adjudication was held to be vitiated for breach of natural justice, and the matter was remanded for fresh decision after supply of the relevant documents, return of the non-relied-upon documents, and grant of personal hearing.

---

---

Issues: Whether the adjudication was vitiated for violation of principles of natural justice because relied-upon documents were not supplied, non-relied-upon documents were not returned, and the assessee was not given an effective opportunity to present its defence, warranting remand.

Analysis: The record showed that although the department asserted supply of all relied-upon documents, correspondence indicated that some such documents had not been furnished. Copies of statements were supplied, but the documents on which those statements were based were not given to the assessee. The assessee was also denied the benefit of certain non-relied-upon documents, which were not returned. Mere availability of inspection, without furnishing the documents needed for rebuttal, did not amount to an effective opportunity to defend against the show-cause notices. In these circumstances, the adjudication was held to be procedurally unfair and inconsistent with natural justice.

Conclusion: The adjudication was vitiated for breach of natural justice and the matter was remanded for fresh decision after supplying the relevant documents, returning the non-relied-upon documents, and granting personal hearing.

Ratio Decidendi: An adjudication in revenue proceedings cannot be sustained where the assessee is denied access to relied-upon documents necessary for rebuttal and thereby deprived of an effective opportunity of defence.

---