Natural justice in sales tax assessments requires a meaningful hearing; failure to respond to a timely adjournment request vitiates assessment.

A binding administrative circular requiring the assessing authority to consider a timely request for further time and communicate its decision was not complied with before completion of assessment under the Tamil Nadu General Sales Tax Act, 1956. Because the assessee was not afforded an effective personal hearing and reasonable opportunity to press final objections, the assessments were treated as vitiated for breach of natural justice. The writ petitions succeeded, the impugned assessments were annulled, and the matter was remitted for fresh assessment after giving personal hearing and considering the objections.

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Issues: Whether the original assessment orders were liable to be set aside for violation of natural justice on account of denial of effective personal hearing.

Analysis: The assessment notices were issued under Section 12 of the Tamil Nadu General Sales Tax Act, 1956, and the assessee sought further time for personal hearing within the period contemplated by Circular No. 7/2014 BB1/3589/2014. That circular required the assessing authority to examine a request for further time made within fifteen days and to communicate whether time was being granted. No response was sent to the assessee's request, and the assessment orders were passed without affording an effective hearing. The Court found that, in these circumstances, the binding circular was not followed and the requirement of reasonable opportunity was not met.

Conclusion: The assessment orders were unsustainable for violation of natural justice and were set aside.

Final Conclusion: The writ petitions succeeded, the impugned assessments were annulled, and the matter was remitted for fresh assessment after affording personal hearing and considering the final objections.

Ratio Decidendi: Where a binding administrative circular requires the assessing authority to respond to a timely request for adjournment or further time, failure to do so before completing the assessment results in denial of reasonable opportunity and vitiates the assessment on the ground of natural justice.

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