Third-party data assessment challenge leads to conditional remand with fresh hearing and reconsideration of objections.

An assessment based on seller-side website data was found vulnerable because it did not show proper application of the JKM Graphics Solutions principle requiring consideration of the assessee's objections and supporting materials. The Court noted service by registered post and affixture, but in view of the procedural objections and the need for one further opportunity, it directed that the impugned assessment be treated as a show-cause notice. The assessee was permitted to file objections and obtain a personal hearing on payment of 15% of the tax assessed, after which the assessment had to be redone on the basis of the objections and documents.

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Issues: Whether the assessment order required interference for non-service of the order and for non-application of the principle requiring consideration of seller-side data, and whether the matter should be restored for fresh consideration after opportunity to file objections.

Analysis: The assessment was based on website information of sellers and the assessee contended that the assessment had not been served in the manner required. The Court noticed that the proposed assessment had been sent by registered post and that there was an endorsement of service by affixture, but it also found that the assessment did not reflect application of the JKM Graphics Solutions principle. In view of these circumstances, and considering the need to give the assessee one further opportunity, the Court directed that the impugned order be treated as a show-cause notice, objections be filed, a personal hearing be granted on payment of 15% of the tax assessed, and the assessment be redone by taking into account the objections and documents.

Conclusion: The impugned assessment was not sustained as such and the matter was remitted for fresh assessment after compliance with the stipulated condition, which was in part in favour of the petitioner.

Final Conclusion: The writ petition ended in a conditional remand for reassessment, preserving the revenue's demand only to the extent of the payment condition and requiring a fresh adjudication on objections and materials.

Ratio Decidendi: Where an assessment is made on third-party data without proper application of the governing principle and the assessee seeks an opportunity to object, the assessment may be treated as a show-cause notice and the matter remitted for fresh consideration with an opportunity of hearing.

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