Natural justice in tax assessment requires an effective opportunity to object before final assessment is made.

A tax assessment made without an effective opportunity to object to the pre-assessment notice was held unsustainable on natural justice grounds. Although service of the notice by registered post and its return with the endorsement "absent intimation" was not faulted, the assessee had not been able to file objections or contradict the allegations before the assessment was finalised. Fairness therefore required a fresh opportunity to respond before any reassessment. The assessment order was set aside and the matter remitted for fresh notice, objections, hearing, and assessment.

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Issues: Whether the assessment order passed without effective opportunity to respond to the pre-assessment notice was liable to be set aside and the assessee afforded a fresh opportunity.

Analysis: The assessment was made under Section 17(3) of the KGST Act for the relevant assessment year. The record indicated that the pre-assessment notice had been sent by registered post and returned with the endorsement "absent intimation", and the Court was not persuaded to fault the attempted service. At the same time, the assessee faced a substantial tax and interest demand without having been able to file objections or contradict the allegations. In these circumstances, fairness required that the assessee be given an opportunity to respond to the notice before a fresh assessment was made.

Conclusion: The assessment order was set aside and the matter was remitted for issuance of notice, filing of objections, hearing, and fresh assessment.

Ratio Decidendi: Where a tax assessment has been completed without giving the assessee an effective opportunity to object to the pre-assessment notice, the assessment is liable to be set aside and the assessee must be afforded a fresh opportunity in conformity with natural justice.

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