Natural justice and retrospective amendment limits led to setting aside tax orders for fresh consideration after hearing.

Rejection of compounding and the consequential regular assessments were set aside because the assessee was not given a meaningful opportunity of hearing before the adverse orders were passed. The Court held that the notices and hearing dates did not satisfy natural justice, and it also noted that the restriction relied on by the Assessing Officer was introduced only in 2014, while the assessment years in question preceded that amendment. The matter was remitted to the Assessing Authority for fresh consideration, including examination of whether the later restriction could apply to the earlier period, after hearing the petitioner.

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Issues: Whether rejection of compounding and consequential regular assessment under Section 8(c) of the Kerala Value Added Tax Act, 2003 could be sustained when the assessee was not afforded a proper hearing and when the authority relied on a restriction introduced only in 2014.

Analysis: The orders were found vulnerable for want of compliance with natural justice, since the notices and hearing dates disclosed no meaningful opportunity of hearing before the adverse orders were passed. The Court also noted that the restriction relied on by the Assessing Officer was introduced only in 2014, whereas the subject years preceded that amendment, and directed the Assessing Authority to examine that contention afresh.

Conclusion: The rejection of compounding and the consequential regular assessments were set aside and the matter was remitted for fresh consideration after hearing the petitioner.

Final Conclusion: The dispute was reopened for a fresh decision on the validity of the compounding rejection and the consequential assessments, with the petitioner entitled to be heard before the Assessing Authority.

Ratio Decidendi: An adverse tax order based on an amended restriction cannot be sustained without a proper opportunity of hearing, and the applicability of a later amendment to an earlier assessment period must be examined on remand.

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