Natural justice in sales tax reassessment led to quashing of rejection and remand for fresh hearing.

Section 16-D of the Tamil Nadu General Sales Tax Act was treated as a remedial provision for cases involving inability to participate effectively in assessment proceedings or allegations of statutory illegality or breach of natural justice. The Special Committee's rejection of the assessee's application was based on a three-year limitation theory and an alleged failure to cooperate, even though no express limitation was prescribed under Section 16-D and the grievance of ex parte assessment without a real hearing was not properly addressed. The rejection was quashed and the matter was remitted for fresh disposal on merits after granting an effective opportunity of hearing.

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Issues: Whether the order of the Special Committee rejecting the assessee's application under Section 16-D of the Tamil Nadu General Sales Tax Act, 1959 on the ground of limitation and on the premise that the assessee had failed to cooperate in the assessment proceedings was sustainable, and whether the matter required interference and remand for fresh consideration after affording an effective opportunity of hearing.

Analysis: The application under Section 16-D was intended to provide redress where an assessee had been unable to effectively participate in the assessment proceedings or where the order complained of suffered from statutory illegality or violation of natural justice. The impugned rejection proceeded substantially on a three-year limitation theory, although no express limitation was prescribed under Section 16-D, and also did not adequately address the grievance that the assessments were made ex parte without a real opportunity of hearing. In these circumstances, the Court found that the Special Committee had not addressed the core issue and that the assessee was entitled to an opportunity to be heard.

Conclusion: The rejection by the Special Committee was quashed and the matter was remitted to the Assessing Officer for fresh disposal on merits after granting the assessee an opportunity of hearing.

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