Natural justice in tax assessment prevails where pre-assessment notices are not effectively served and hearing is denied.

Availability of a statutory appellate remedy under the AP VAT Act does not bar writ jurisdiction where the assessee pleads non-service of pre-assessment notices and denial of a real hearing. The writ was treated as maintainable because the challenge was founded on breach of natural justice and was filed within the appeal period. On the merits, notices sent to an old address, another group company, a former employee's email, and a resigned director did not constitute effective service on the assessee. The assessment was therefore held to be vitiated by lack of effective opportunity and was set aside, with remand for fresh assessment after hearing.

---

---

Issues: (i) whether the writ petition was not maintainable in view of the statutory appellate remedy under the AP VAT Act; (ii) whether the assessment order was liable to be set aside for violation of principles of natural justice on account of non-service of notices and denial of personal hearing.

Issue (i): whether the writ petition was not maintainable in view of the statutory appellate remedy under the AP VAT Act.

Analysis: The availability of an alternative remedy does not operate as an absolute bar where there is a pleaded violation of natural justice or where the assessee asserts that the assessment was completed without a real opportunity of objection. The challenge was founded on the alleged non-service of pre-assessment notices and denial of hearing, and the writ petition had been filed within the appeal period.

Conclusion: The writ petition was maintainable and the objection based on alternative remedy was rejected.

Issue (ii): whether the assessment order was liable to be set aside for violation of principles of natural justice on account of non-service of notices and denial of personal hearing.

Analysis: The notices relied upon by the assessing authority were shown to have been sent to the old address, to a different group company, to an erstwhile employee's e-mail, and to a former director who had already resigned. The changed registration address also supported the assessee's case that the notices did not reach the correct recipient. On these facts, the assessee was deprived of an effective opportunity to submit its explanation and to be personally heard before assessment.

Conclusion: The assessment order was vitiated by violation of natural justice and was liable to be set aside.

Final Conclusion: The writ petition succeeded, the impugned assessment was annulled, and the matter was remitted for fresh assessment after permitting production of records and affording personal hearing.

Ratio Decidendi: A tax assessment made without effective service of pre-assessment notices on the assessee and without affording a real opportunity of hearing is liable to be set aside for breach of natural justice, notwithstanding the existence of an appellate remedy.

---