Natural justice breach in tax proceedings led to setting aside an ex parte order and remand for fresh hearing.

An ex parte Tax Board order was challenged on the ground that it had been passed without service and without giving the assessee an opportunity of hearing. The record showed that the grievance of non-service was not denied in the reply, and the denial of hearing was treated as a breach of natural justice. The merits of the penalty under section 76(6) of the Rajasthan Value Added Tax Act, 2003 were not examined. The High Court held the order unsustainable, set it aside, and remanded the matter to the Tax Board for fresh consideration after hearing the assessee.

---

---

Issues: Whether the ex parte order of the Tax Board, passed without service and opportunity of hearing to the assessee, was liable to be set aside and the matter remanded for fresh decision.

Analysis: The record showed that the grievance of non-service before the Tax Board was not denied in the reply. In such circumstances, the order had been passed without affording the assessee an opportunity of hearing. Without entering into the merits of the penalty under section 76(6) of the Rajasthan Value Added Tax Act, 2003, the denial of hearing constituted a breach of the principles of natural justice.

Conclusion: The ex parte order of the Tax Board was unsustainable and was set aside, and the matter was remanded to the Tax Board for fresh consideration after hearing the petitioner.

---