Natural justice in reassessment proceedings: order quashed for denial of time to reply and opportunity of hearing.

A reassessment order under the Kerala Value Added Tax Act was found unsustainable where the assessee had sought time to file a reply, but the authority completed the assessment the next day without communicating any rejection of that request or giving an opportunity of hearing. The court treated the denial of a chance to respond as a material procedural defect and quashed the reassessment order. The assessee was allowed to file a reply within the time granted, and fresh orders were directed to be passed thereafter.

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Issues: Whether the reassessment order passed under Section 25(1) of the Kerala Value Added Tax Act, 2003 was unsustainable for want of opportunity to file reply and be heard.

Analysis: The notice proposing reassessment had been met with a request for time to submit a reply. The assessment was completed the very next day without communicating any rejection of that request and without affording the petitioner an opportunity to file a reply or be heard. An order passed in such circumstances cannot stand.

Conclusion: The reassessment order was quashed and the petitioner was permitted to file a reply within the time granted, whereafter fresh orders were to be passed.

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