Natural justice in tax assessment: assessment orders quashed and remitted for fresh consideration after further hearing.

Assessment orders rejecting input tax credit and imposing consequential liabilities were found to have been passed without proper observance of natural justice, as objections and additional submissions had already been filed and a prior personal hearing had taken place. Because the disputed factual issues could not be effectively examined in writ proceedings, the orders were quashed and the matter was remitted for fresh consideration. The respondent was directed to pass new orders after allowing the petitioner to file further representations and to be heard.

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Issues: Whether the impugned assessment orders rejecting the petitioner's claim to input tax credit and imposing consequential liabilities were liable to be quashed for breach of principles of natural justice and the matter remitted for fresh consideration.

Analysis: The assessment orders were passed long after the petitioner had filed objections and additional written submissions, and after a personal hearing had earlier been held by another officer. In these circumstances, and since disputed questions of fact could not be effectively examined in writ proceedings, the assessment orders were found to have been made without proper adherence to the requirements of natural justice.

Conclusion: The impugned assessment orders were quashed and the matters were remitted to the respondent for fresh orders after giving the petitioner an opportunity to file additional representations and be heard.

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