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of <h1>Ex-parte Assessment Order Quashed for FY 2013-14 Due to Lack of Notice, Fresh Hearing Ordered Under Section 148</h1> <h3>Team Trading Company Versus The Assistant Commissioner Of Commercial Tax, Unit 5, Ahmedabad.</h3> 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 ... Breach of principles of natural justice in passing the impugned Assessment Order - ex-parte assessment order - petitioner is willing to deposit the amount in compliance with the order with the respondent, within one month - HELD THAT:- It is not in dispute that the petitioner has migrated out of India since 2021, and therefore, was not made aware about any notices or impugned Assessment Order at any point of time. This fact is evident from the letters written by the advocate of the petitioner which are placed on record at page Nos. 49 and 50. As the certified copy of the Assessment Order was obtained by the advocate of the petitioner only in the month of January 2025, which is evident from the record that the petitioner was not aware about the impugned order nor was served with the notice of hearing. It is also apparent now that the petitioner has shown the willingness to deposit Rs. 5 lakhs to show her bona fides and to co-operate with the assessment proceedings if the impugned Assessment Order is quashed and set aside and the matter is remanded back to the respondent- Assessing Officer to pass a fresh De novo order after granting an opportunity of hearing. Considering the facts of the case and the affidavit of undertaking filed by the petitioner, the impugned Assessment Order passed for the Financial Year 2013-14 is hereby quashed and set aside and the matter is remanded to the respondent – Assistant Commissioner, Sales Tax, Unit-5, Ahmedabad, to pass a fresh de novo order if the petitioner deposits Rs.5 lakhs within a period of one month from today as per the undertaking filed before this Court. Petition disposed off by way of remand. 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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