Natural justice in cancellation proceedings: defective notice and missing hearing opportunity led to quashing and remand.

A defective show cause notice that did not specify separate dates for filing a reply and for personal hearing was treated as a breach of natural justice. The cancellation order was also based on a ground not specifically mentioned in the notice, which vitiated the proceedings for denial of fair hearing. On that basis, the cancellation and appellate orders were quashed and the matter was remanded to the Assessing Authority for fresh decision after giving an opportunity of hearing and considering any returns filed.

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Issues: Whether the cancellation order and the appellate order were liable to be quashed for violation of the principles of natural justice arising from the defective show cause notice and the absence of separate dates for filing reply and personal hearing.

Analysis: The notice did not fix distinct dates for submission of reply and for personal hearing, and the cancellation order was passed on a ground not specifically set out in the notice. The defect was treated as a breach of the requirement of fair hearing and as sufficient to vitiate the cancellation proceedings.

Conclusion: The impugned cancellation order and the appellate order were quashed, and the matter was remanded to the Assessing Authority for fresh decision after granting an opportunity of hearing and considering any returns filed.

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