Natural justice in tax revision: ex parte revisional orders fail when a reasonable chance to reply is denied.

An ex parte revisional order under section 35 of the Kerala General Sales Tax Act was treated as vulnerable where the assessee was not given a reasonable and adequate opportunity to file a reply. The right to respond was described as an essential part of fair hearing, especially when substantial tax liability was proposed. On the facts, the time granted was considered insufficient, so proceeding without a reply breached natural justice and rendered the revisional order unsustainable. The matter was therefore remanded for fresh consideration after giving the assessee a further opportunity to be heard.

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Issues: Whether an ex parte revisional order passed under section 35 of the Kerala General Sales Tax Act, 1963, without granting sufficient opportunity to file a reply, was vitiated for breach of natural justice and required remand.

Analysis: The revisional authority had issued notice proposing to revise the assessment, but the assessee sought additional time to respond because of personal difficulties. Although some further time was granted, the authority proceeded ex parte when no reply was filed within that period. The right to file a reply and present one's case was treated as an indispensable part of fair hearing. The opportunity of hearing must be reasonable and adequate, particularly where a substantial tax liability is in issue. On the facts, the time granted was held to be insufficient and the ex parte order was therefore inconsistent with the principles of natural justice.

Conclusion: The ex parte revisional order was unsustainable, and the matter had to be remanded for fresh consideration after giving the assessee one more opportunity to reply.

Ratio Decidendi: A revisional order imposing tax liability, passed without affording a reasonable and adequate opportunity to reply, is liable to be set aside for breach of the principles of natural justice.

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