Natural justice in reassessment: assessment set aside where no fair opportunity was given to file objections and books of account.

An assessment under the Kerala Value Added Tax Act may be set aside where reassessment is completed without considering a taxpayer's request for reasonable time to file objections and produce books of account. Fairness in reassessment proceedings requires an effective opportunity to reply and place relevant material on record; failure to communicate a decision on the request and proceeding to finalise the assessment amounts to a breach of natural justice. The assessment order was therefore set aside and the matter remitted for reconsideration after granting an opportunity to appear, reply, and produce documents.

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Issues: Whether the assessment order passed under Section 25(1) of the Kerala Value Added Tax Act, 2003 was liable to be set aside for non-consideration of the request for time to file reply and produce books of account, resulting in breach of natural justice.

Analysis: The petitioner sought time to submit a reply and produce accounts after receipt of notice for reassessment. The assessment was finalised without communicating any decision on that request. The Court held that even in reassessment proceedings, fairness requires reasonable time to be granted for filing objections and producing documents. Since the petitioner was left unaware of the status of the request and the assessment was completed without affording a fair opportunity, the order was prima facie contrary to the principles of natural justice.

Conclusion: The impugned assessment order was set aside and the matter was directed to be reconsidered after affording the petitioner an opportunity to appear, file a reply, and produce books of account.

Ratio Decidendi: An assessment made without disposing of a request for reasonable time to reply and without affording a fair opportunity to place material on record is liable to be set aside for breach of natural justice.

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