Natural justice requires a meaningful hearing before tax assessment; assessment notice and demand were quashed for lack of opportunity.

A taxpayer assessment was challenged on the ground that the assessment order and demand notice were issued without an effective opportunity of hearing, contrary to natural justice. Although notice had been served under the Kerala Value Added Tax Act, the assessee sought an adjournment after the death of the chairman and the scheduling of the funeral on the same date, so the absence could not be treated as deliberate. The court held that fairness required time to file objections and a personal hearing before assessment was completed, and it quashed the assessment order and demand notice for reconsideration after hearing the petitioner.

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Issues: Whether the assessment order and demand notice were liable to be quashed for want of effective opportunity of hearing and for breach of the principles of natural justice.

Analysis: The petitioner had received notice under Section 24 of the Kerala Value Added Tax Act but sought an adjournment because the chairman had died shortly before the scheduled hearing and the funeral was fixed on the same day as the notice period. In these circumstances, the non-appearance could not be treated as deliberate. Fairness required that the petitioner be given an opportunity to file objections to the notice and be heard before assessment was completed.

Conclusion: The assessment order and demand notice were quashed and the matter was directed to be reconsidered after receipt of objections and grant of hearing to the petitioner.

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