Ex parte tax assessment and purchase tax levy were remanded for fresh hearing after inadequate opportunity to respond.

An ex parte tax assessment that disallowed input tax credit and imposed purchase tax was found suitable for partial interference and remand because the assessee had not been given a meaningful opportunity to produce books of account, documents, and explanations. The Court directed fresh consideration by the assessing officer after personal hearing, with written submissions and supporting records taken into account, and held that the assessee could contest the purchase tax levy under Section 17 in the remanded proceedings. The already-allowed input tax credit was left undisturbed, while coercive recovery was restrained pending fresh adjudication.

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Issues: (i) Whether the ex parte assessment order disallowing input tax credit and levying purchase tax warranted interference and remand for fresh consideration; (ii) whether the assessee was entitled to an opportunity to contest the purchase tax levy under Section 17 of the Act.

Issue (i): Whether the ex parte assessment order disallowing input tax credit and levying purchase tax warranted interference and remand for fresh consideration.

Analysis: The assessment was made ex parte, notices were stated to have been sent only by e-mail, and the material indicated that the assessee had not been afforded a full opportunity to place books of accounts, documents, and explanations. A part of the input tax credit had already been allowed, while the balance was rejected, and the matter called for reconsideration by the assessing officer after hearing the assessee. The tribunal's direction to pursue the appellate remedy did not cure the need for a fresh assessment on the disputed components.

Conclusion: The ex parte assessment was interfered with to the extent of the disallowed input tax credit and the purchase tax levy, and the matter was remanded for fresh adjudication in favour of the assessee.

Issue (ii): Whether the assessee was entitled to an opportunity to contest the purchase tax levy under Section 17 of the Act.

Analysis: The assessee was permitted to raise all objections on the levy of purchase tax in the remanded proceedings. The Court directed that a personal hearing be granted and that written submissions and supporting records be considered before a fresh order is passed.

Conclusion: The assessee was held entitled to contest the purchase tax levy under Section 17 of the Act before the assessing officer.

Final Conclusion: The writ petition succeeded to the extent that the disputed assessment was set aside in part and sent back for fresh consideration, while the already-allowed input tax credit was left undisturbed and coercive recovery was restrained in the meantime.

Ratio Decidendi: An ex parte tax assessment that has not afforded a meaningful opportunity of hearing may be set aside and remanded for fresh decision where the disputed levy and credit claim require reconsideration on the assessee's materials.

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