Natural justice and lockdown constraints led to setting aside assessment orders passed without a meaningful opportunity to respond.

Assessment orders passed under the Central Sales Tax regime during the March 2020 lockdown were found to have been made without a meaningful opportunity for the assessees to respond. Because commercial establishments were closed and the assessees could not attend offices or compile records, they could not be expected to file objections, and the assessing authorities could not treat silence as acquiescence merely because limitation was nearing expiry. The orders were therefore interfered with for breach of natural justice and the matters were remanded for fresh consideration after notice and hearing.

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Issues: Whether the assessment orders passed during the lockdown period, without affording the assessees a meaningful opportunity to respond, were liable to be set aside for violation of natural justice.

Analysis: The petitions concerned assessment orders passed under the Central Sales Tax regime for the relevant assessment year at the end of the limitation period, when the State lockdown imposed in March 2020 had closed commercial establishments and prevented the assessees from attending their offices or compiling records. The Court noted that the petitioners were covered by the lockdown restrictions and were not among the categories permitted to function. In those circumstances, the assessees could not be expected to appear or file objections, and the assessing authorities could not presume acquiescence merely because limitation was nearing expiry. The assessment orders were therefore passed without adequate opportunity.

Conclusion: The assessment orders were liable to be interfered with for breach of natural justice and were set aside, with the matters remanded to the assessing authorities for fresh consideration after notice and hearing.

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