Natural justice in works contract assessment leads to remand after failure to consider dealer's reply and documents.

Revised assessment orders were set aside because the dealer's preliminary reply and supporting documents, produced during inspection, were not considered before finalisation. In a works contract consumption assessment, those materials required verification before any adverse order could be passed. The omission to examine the reply and documents amounted to denial of a fair opportunity and breach of natural justice. The matter was remanded for fresh assessment after considering the additional reply and documents and after granting personal hearing.

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Issues: Whether the revised assessment orders were liable to be set aside for non-consideration of the dealer's preliminary reply and supporting documents, resulting in violation of natural justice.

Analysis: The records showed that the dealer had produced documents during inspection and had also filed a preliminary reply. Those materials were not taken into account before the revised orders were passed. Since the assessment related to consumption of materials used in execution of works contracts, the documents required verification before any final order could be made. Non-consideration of the reply and documents amounted to denial of a fair opportunity and a breach of natural justice.

Conclusion: The impugned revised orders were set aside and the matter was remanded for fresh assessment after considering the additional reply and documents and after granting personal hearing.

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