Natural justice in assessment proceedings: defective notice service and denial of objections led to remand for fresh consideration.

Assessment orders were set aside because service of the proposal notice was not properly effected and the dealer was not given an effective opportunity to file objections. The Court treated non-compliance with the prescribed mode of service, together with the denial of a fair hearing before adverse assessment, as a breach of natural justice. The matter was remitted for fresh consideration, with directions to receive objections and afford a personal hearing before passing a new order, subject to the conditions imposed by the Court.

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Issues: Whether the assessment orders passed without proper service of the proposal notice and without affording an opportunity to file objections were liable to be set aside and the matter remitted for fresh consideration.

Analysis: The impugned orders were passed for multiple assessment years on the same day without following the prescribed mode of service when the notice was stated to have not been served on the dealer. Non-compliance with the procedure for service of notice, read with the requirement of affording a fair opportunity before making an adverse assessment, amounted to a breach of the principles of natural justice. Since the petitioner was denied an effective opportunity to respond to the proposal, the assessment could not be sustained on its existing footing.

Conclusion: The assessment orders were set aside and the matter was remitted to the authority for fresh consideration after receiving objections and granting personal hearing, subject to the conditions imposed by the Court.

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