Natural justice in assessment proceedings: denial of a real hearing can justify writ relief despite an alternative appeal

A statutory assessment made on the same day as receipt of extensive objections, without a personal hearing or meaningful consideration, was held to breach the requirement of a real and effective opportunity of being heard. The assessment was therefore invalid for violation of natural justice and was quashed. The existence of an alternative statutory appeal did not bar writ relief because that rule is not absolute; where the assessment is made in undue haste and is tainted by denial of hearing, the writ court may intervene. The refusal to exercise writ jurisdiction was therefore unsustainable, and the matter was left open for fresh assessment after proper opportunity.

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Issues: (i) Whether the assessment order was vitiated for denial of a real and effective opportunity of being heard, and (ii) whether the existence of an alternative statutory appeal justified refusal to exercise writ jurisdiction.

Issue (i): Whether the assessment order was vitiated for denial of a real and effective opportunity of being heard.

Analysis: The objections to the pre-assessment notice were extensive and raised complicated factual and legal matters. The assessment was passed on the same day the objections were received, without any personal hearing or meaningful consideration of the objections. In such circumstances, the requirement of a reasonable opportunity of being heard was not satisfied, and the assessment was contrary to the principles of natural justice.

Conclusion: The assessment order was invalid for breach of natural justice and was rightly quashed.

Issue (ii): Whether the existence of an alternative statutory appeal justified refusal to exercise writ jurisdiction.

Analysis: Although an alternative remedy ordinarily weighs against interference under writ jurisdiction, that rule is not absolute. Where the assessment is shown to have been made in undue haste and in violation of natural justice, the writ court can intervene. The discretionary refusal by the single judge ignored these vitiating circumstances.

Conclusion: The refusal to exercise writ jurisdiction was unsustainable in the facts of the case.

Final Conclusion: The assessment and the order of the single judge were set aside, and the matter was left open for a fresh assessment after giving the assessee proper opportunity.

Ratio Decidendi: A statutory assessment made without a real and effective opportunity of hearing is vitiated by breach of natural justice, and the availability of an alternative remedy does not bar writ relief where the impugned order is so tainted.

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