Natural justice in reassessment requires a personal hearing after reply to the proposition notice before final order is made.

A reassessment under the Karnataka Value Added Tax Act was challenged on the ground that the assessee was not given a personal hearing after filing a reply to the proposition notice. The text states that earlier pre-show-cause opportunities did not extinguish the right to seek a hearing at that later stage, and that fair procedure required consideration of the specific request made in the reply. It further states that proceeding to reassessment without granting the requested hearing amounted to breach of natural justice, leading to setting aside of the order and remand from the stage of the reply to the proposition notice for fresh consideration with a personal hearing.

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Issues: Whether the reassessment order was vitiated for failure to afford the petitioner a personal hearing after receipt of the reply to the proposition notice.

Analysis: The reassessment was made under Section 39(1) of the Karnataka Value Added Tax Act, 2013. Prior opportunities during the pre-show-cause stage did not eliminate the petitioner's entitlement to seek a personal hearing after issuance of the proposition notice. Since the petitioner had specifically requested a hearing in the reply and the order was passed without granting it, the requirement of fair procedure was not satisfied.

Conclusion: The reassessment order was held to be in breach of the principles of natural justice and was set aside. The matter was remanded for reconsideration from the stage of receipt of the reply to the proposition notice, with an opportunity of personal hearing.

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