Effective hearing rights invalidate assessment and penalty action where inadequate response time denies natural justice.

Effective opportunity of hearing is required under the principles of natural justice and audi alteram partem before an assessment and consequential penalty action can be sustained. The text states that allowing only two days to respond, not considering an adjournment request, and the assessee's inability to upload its response denied an adequate opportunity to address the proposed assessment. It identifies the resulting assessment order, demand and penalty proceedings as untenable for breach of natural justice.

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Issues: Whether an assessment and consequential penalty proceedings could be sustained when the assessee was afforded only two days to respond to the notice and was not granted an effective opportunity of hearing.

Analysis: A fair and unbiased hearing is an essential requirement of the principles of natural justice, embodied in audi alteram partem. The undisputed grant of only two days for filing a response, coupled with the failure to consider the request for adjournment and the assessee's inability to upload its response, deprived the assessee of an appropriate opportunity to answer the proposed assessment.

Conclusion: The assessment order and consequential demand and penalty proceedings were untenable for breach of principles of natural justice, in favour of the assessee.

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