Natural justice in tax assessment: defective service of notice invalidated the order and required fresh assessment.

An assessment order based on a show-cause notice was unsustainable where the dealer was not given a fair and effective opportunity to respond. The record indicated that the notice was dispatched only after the response period had already begun, and no reliable material proved service by e-mail or compliance with the prescribed mode of service. Because the defect went to the root of the assessment process, the court treated it as a denial of natural justice, set aside the assessment order, and remanded the matter for fresh assessment after due notice and opportunity.

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Issues: Whether the assessment order could be sustained when the dealer was not given adequate notice and opportunity before completion of assessment, and whether the service of notice satisfied the prescribed procedure.

Analysis: The assessment was founded on a show-cause notice granting seven days to respond, but the material on record indicated that the notice was dispatched only after the date mentioned for response had already been running. No reliable material was produced to show service through e-mail as claimed, and the available record did not establish that the notice was served in the manner required. In these circumstances, the dealer was not afforded a fair and effective opportunity to explain the case before the assessment was finalised. The defect went to the root of the assessment process and amounted to denial of natural justice.

Conclusion: The assessment order could not be sustained and was liable to be set aside. The matter was remanded to the assessing authority for fresh assessment after due notice and opportunity to the dealer.

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