Effective service of notices and opportunity to reply justified conditional remand of assessment after partial tax deposit.

Effective service of assessment notices and a meaningful opportunity to respond are required before an assessment is sustained. Where the notices and order were placed only on the common portal and the assessee was not effectively served, the Madras HC set aside the assessment and remitted the matter for fresh adjudication. The assessee was required to deposit 25% of the disputed tax and file objections with supporting material within the time granted; on compliance, the bank attachment was to be lifted. If the conditions were not met, the assessment order would stand restored.

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Issues: Whether the assessment order was liable to be set aside for want of effective service of notices and denial of opportunity, and whether the matter should be restored for fresh adjudication on condition of partial deposit.

Analysis: The assessment order was challenged on the ground that the notices and the order had been uploaded only in the common portal and were not served by tender or registered post, resulting in non-participation in the adjudication proceedings. The Court accepted the request for one further opportunity, taking note of the assessee's willingness to deposit a part of the disputed tax and to file objections with supporting material. The bank attachment was also directed to be lifted on compliance with the stipulated condition.

Conclusion: The impugned assessment order was set aside, and the matter was remitted for reconsideration after the assessee deposits 25% of the disputed tax and files objections within the time granted. If the conditions are not complied with, the assessment order stands restored.

Final Conclusion: The assessee obtained conditional relief by way of setting aside of the assessment order and an opportunity for fresh adjudication, while the revenue's recovery action was kept alive in default of compliance.

Ratio Decidendi: Where effective opportunity to contest an assessment is shown to have been denied, the assessment may be set aside and the matter remitted for fresh consideration, subject to reasonable conditions to secure the disputed demand.

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