Court sets aside assessment order for unregistered dealer; lack of hearing violates natural justice. Remitted with specific terms.

The court set aside the assessment order due to lack of opportunity and personal hearing for an unregistered dealer. The petitioner's challenge was based on a notice served at a closed business location, arguing a violation of natural justice principles. The court found that although a partner received the notice, the petitioner failed to respond, leading to the penalty imposition without a hearing. The matter was remitted to the Assessing Officer with specific terms, requiring a reply and tax payment from the petitioner within three weeks for a scheduled personal hearing and subsequent assessment order issuance within six weeks.

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Issues:
1. Assessment order challenged for lack of opportunity and personal hearing.
2. Allegation of notice served at a closed business location.
3. Dispute over principles of natural justice and partner's responsibility.

Analysis:
The petitioner challenged the assessment order dated 15.10.2018 for the assessment year 2015-2016, alleging lack of opportunity and personal hearing. The main grievance was that being an unregistered dealer, the order was passed without sufficient opportunity to present their case. It was contended that the notice of proposal was served at a location where the petitioner had already closed the business, requesting another chance to be heard. The respondents argued that the notice was served on one of the partners of the petitioner Firm, maintaining that natural justice principles were not violated.

Upon hearing both sides, the court noted that the notice of proposal indicated the petitioner as an unregistered dealer who had vacated the premises, with the notice being served at the same address. Although one partner received the notice, they failed to inform the petitioner firm to respond. As the petitioner did not file a reply before the Assessing Officer, the court refrained from delving into the merits of the case. The assessment order was based on the petitioner's failure to reply and the imposition of a penalty without a personal hearing.

In light of the circumstances, the court set aside the impugned order and remitted the matter back to the Assessing Officer with specific terms. The petitioner was directed to file a reply with 10% tax liability payment within three weeks. Upon receipt, the respondents were to schedule a personal hearing, following which the Assessing Officer would issue the assessment order within six weeks. No costs were imposed, and the connected miscellaneous petition was closed, ensuring the interests of both parties were protected through a fair process.

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