Natural justice and jurisdiction defects led to quashing of an assessment order and remand for fresh adjudication

An assessment order challenged for breach of natural justice and lack of jurisdiction was found unsustainable in its present form. The court set aside the order and remitted the matter for fresh adjudication, while protecting revenue interests through conditions requiring a partial tax deposit and a detailed reply. The quashed order was also directed to be treated as an addendum to the show cause notice, ensuring reconsideration on notice and hearing compliance. The dispute was therefore sent back for a fresh order subject to those conditions.

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Issues: Whether the assessment order was liable to be quashed for violation of the principles of natural justice and want of jurisdiction, and whether the matter should be remitted for fresh consideration.

Analysis: The assessment order was challenged on the ground that the petitioner was not afforded a proper opportunity of hearing and that the order suffered from jurisdictional infirmity. The Court accepted that the impugned order could not be sustained in its present form and considered it appropriate to set it aside while safeguarding the revenue by directing a fresh adjudication. The Court also imposed conditions requiring deposit of a portion of the disputed tax and filing of a detailed reply, and directed the quashed order to be treated as an addendum to the show cause notice.

Conclusion: The assessment order was quashed and the matter was remitted to the respondent authority for fresh order, subject to the stated conditions.

Final Conclusion: The petitioner obtained partial relief, with the assessment annulled and the dispute sent back for reconsideration on compliance with conditions.

Ratio Decidendi: An assessment order found unsustainable on procedural grounds may be quashed and remitted for fresh consideration, with protective conditions to balance the interests of both sides.

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