Limited prima facie screening under tax procedure does not require disclosure of the opposing counter-statement before decision.

A limited preliminary screening under section 28(5) of the Finance Act 1960 required the tribunal only to decide whether a prima facie case existed on the statutory documents. The statutory declaration by the taxpayer and the commissioners' counter-statement were part of that confined process, but natural justice did not require automatic disclosure of the counter-statement or a further opportunity to reply before the prima facie decision. The scheme, read as a whole, was treated as fair because Parliament specified the materials to be considered at that stage, while leaving only a residual exceptional power to act where fairness demanded it.

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Issues: Whether, under section 28 of the Finance Act, 1960, the tribunal was required by natural justice to disclose the commissioners' counter-statement to the taxpayer and allow a reply before deciding whether there was a prima facie case for proceeding.

Analysis: The preliminary function under section 28(5) was limited to deciding whether a prima facie case existed on the specified documents. The statutory scheme gave the taxpayer an opportunity to state all relevant facts and grounds by statutory declaration, while the commissioners could submit a counter-statement to the tribunal. The House held that natural justice is flexible and depends on the nature of the inquiry and the statutory context. Reading the section as a whole, Parliament intended the tribunal at this stage to consider only the documents specified by the statute, and the omission of a right to inspect and answer the counter-statement did not make the procedure unfair. The tribunal retained only a residual ability to act exceptionally if fairness so required.

Conclusion: The taxpayer had no general right at the prima facie stage to see the commissioners' counter-statement or to reply to it before the tribunal determined whether there was a prima facie case for proceeding.

Ratio Decidendi: Where a statute creates a limited preliminary screening procedure and expressly specifies the materials to be considered, the court will not imply a further right of disclosure and reply unless the statutory scheme, read as a whole, makes the procedure unfair.

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