Natural justice in KVAT assessments: orders quashed for ignoring objections and denying an effective hearing.

Assessment orders issued under the KVAT Act were set aside because they were made without considering the dealer's objections and without affording an effective opportunity of hearing. The dealer had sought time to file objections and permission to submit revised returns, but the record showed that the objections were not dealt with before the orders were passed and the request for time was not communicated as rejected. Fresh consideration was therefore required, with the authority directed to pass new orders only after considering the objections and giving a proper hearing.

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Issues: Whether the assessment orders passed pursuant to the notices issued under the KVAT Act were liable to be quashed for having been made without considering the dealer's objections and without affording a proper opportunity of hearing.

Analysis: The notices were issued for the relevant assessment years and the dealer had sought permission to file revised returns as well as time to file objections. The materials showed that the objections were not taken into account before the impugned orders were passed, and the request for time was also not communicated as rejected. In these circumstances, the matter required reconsideration after giving the dealer an effective opportunity to be heard.

Conclusion: The impugned orders were quashed and the respondent was directed to pass fresh orders after considering the objections and after affording an opportunity of hearing.

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