Ex-parte Assessment Order Quashed for FY 2013-14 Due to Lack of Notice, Fresh Hearing Ordered Under Section 148

The HC quashed and set aside the ex-parte Assessment Order for FY 2013-14 due to breach of natural justice, as the petitioner, having migrated abroad since 2021, was not served notice or made aware of the proceedings. The petitioner's advocate obtained the certified copy only in January 2025. The court directed the respondent to pass a fresh de novo order after granting an opportunity of hearing, contingent upon the petitioner depositing Rs. 5 lakhs within one month as a demonstration of bona fides. The matter was remanded to the Assistant Commissioner, Sales Tax, Unit-5, Ahmedabad, for fresh assessment proceedings. The petition was disposed of accordingly.

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ISSUES:

Whether the impugned Assessment Order passed ex-parte without providing an opportunity of hearing violates the principles of natural justice.Whether a petitioner who was unaware of the assessment proceedings due to migration outside India can seek quashing of the Assessment Order and attachment of bank accounts.Whether the petitioner's offer to deposit a sum as an undertaking can justify remanding the matter for fresh assessment proceedings.Whether the court should exercise its extraordinary jurisdiction under Articles 226 and 227 of the Constitution of India to quash the impugned Assessment and Attachment Orders.

RULINGS / HOLDINGS:

The impugned Assessment Order passed ex-parte without notice to the petitioner is violative of the "principles of natural justice."The petitioner's lack of knowledge of the assessment proceedings due to migration and non-receipt of notices is a valid ground to challenge the Assessment Order and Attachment Order.The petitioner's affidavit of undertaking to deposit Rs. 5 lakhs demonstrates "bona fides" and willingness to cooperate, warranting remand of the matter for a fresh de novo assessment after providing an opportunity of hearing.The court exercised its extraordinary jurisdiction under Articles 226 and 227 to quash and set aside the Assessment Order and consequential Attachment Order, directing fresh proceedings in accordance with law.

RATIONALE:

The court applied the fundamental legal principle that an assessment order passed without affording the affected party an opportunity of hearing constitutes a breach of the "principles of natural justice."The petitioner's migration outside India and consequent non-receipt of notices were considered material facts affecting the petitioner's ability to participate in the assessment proceedings.The court relied on the petitioner's affidavit undertaking to deposit a substantial amount as evidence of good faith, justifying a discretionary relief by remanding the matter for fresh consideration.The judgment reflects the court's approach to balance procedural fairness with revenue interests by allowing fresh assessment only upon deposit of a specified sum and ensuring compliance with due process.No dissent or doctrinal shift was indicated; the decision adheres to established principles governing tax assessments and constitutional remedies under Articles 226 and 227.

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