Natural justice in tax adjudication: ex parte order set aside and matter remanded for fresh hearing.

An ex parte adjudication order was set aside because the petitioner had not been able to present its case before the adjudicating authority. As the dispute involved issues requiring examination of both facts and law, the HC declined to determine the tax liability in writ jurisdiction and directed that the matter be reconsidered by the adjudicating authority. The petitioner was required to file a reply to the show-cause notice, and the authority was ordered to pass a fresh, reasoned decision after granting a hearing.

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Issues: Whether the ex parte adjudication order should be set aside and the matter remanded for fresh consideration after affording the petitioner an opportunity of hearing.

Analysis: The petitioner was found to have been unable to place its case before the adjudicating authority and the dispute raised required examination of facts as well as law. In these circumstances, the Court declined to decide the merits of the tax liability in writ jurisdiction and considered it appropriate to grant a further opportunity before the adjudicating authority. The Court also directed filing of a reply to the show-cause notice and required a fresh adjudication by way of a reasoned order after hearing the petitioner.

Conclusion: The impugned order was set aside and the matter was remitted to the adjudicating authority for fresh decision after hearing the petitioner.

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