Natural justice in best judgment assessments requires supply of impounded documents before demand can be sustained.

An ex parte best judgment assessment based on impounded documents was held unsustainable where copies of the retained material were not supplied to the assessee. The court applied the principle of natural justice and noted that section 46(3) of the Punjab Value Added Tax Act, 2005 requires the authority to make the documents available as required and not retain them beyond the prescribed period. Without access to the seized records, the assessee could not explain the entries or answer the proposed demand, so the assessment was vitiated. The assessment order was quashed and the matter remitted for fresh adjudication after supplying the documents and giving a proper opportunity of hearing.

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Issues: Whether the ex parte best judgment assessment was liable to be quashed for failure to supply the impounded documents and for breach of natural justice.

Analysis: The assessment was founded on documents retained by the authority, yet their copies were not supplied to enable the assessee to file an effective reply. Section 46(3) of the Punjab Value Added Tax Act, 2005 obliges the authority not to retain the documents beyond the prescribed period and to make them available as required. Without access to the seized material, the assessee could not properly explain the entries or contest the proposed demand. An order passed in such circumstances is vitiated by denial of a fair opportunity.

Conclusion: The ex parte assessment order was rightly quashed and the matter remitted to the assessing authority for fresh adjudication after supplying the copies of the impounded documents and granting proper opportunity to the assessee.

Ratio Decidendi: An assessment based on impounded documents cannot be sustained unless the assessee is furnished the material necessary to answer it and is given a fair opportunity to respond, failing which the order is vitiated by breach of natural justice.

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