Natural justice in reassessment: denial of requested hearing and record-production opportunity led to setting aside revised assessment orders.

Reassessment orders were found inconsistent with natural justice because the dealer had replied to the show-cause notices, sought time to produce records, and requested a personal hearing, but that hearing was not granted. The orders were passed on the basis that certain accounts and invoices were not produced, even though the notices did not specifically require those records. The revised assessments were therefore unsustainable and were set aside, with the matter restored for fresh consideration after permitting further objections, documents, and a hearing.

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Issues: Whether the revised assessment orders were liable to be set aside for violation of principles of natural justice, including denial of a requested personal hearing and failure to consider the dealer's opportunity to produce records before finalising the reassessment.

Analysis: The dealer had replied to the show cause notices and specifically sought time to produce records and for a personal hearing. The impugned orders proceeded to redraw turnover and levy tax on the footing that certain accounts and invoices were not produced, although the notices did not contain a specific direction requiring those records. The request for personal hearing was not granted. In such circumstances, and in light of the requirement that an adverse order should be preceded by an effective opportunity of hearing where sought, the reassessment orders were found to be inconsistent with natural justice.

Conclusion: The revised assessment orders were unsustainable and were set aside; the matter was restored to the assessing authority for fresh consideration after affording the petitioner time to file further objections and documents and to be heard.

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