Natural justice violation and fresh evidence require remand, not merits adjudication by the Tribunal in reassessment proceedings.

Where a natural justice violation is found and the assessee seeks to rely on material not produced before the Prescribed Authority, the Tribunal should not decide the merits for the first time on that fresh material. Foundational fact-finding remained for the original authority, so the proper course was remand for fresh reassessment after giving the assessee an opportunity to substantiate its claim. The Tribunal's merits decision was therefore unjustified, and the appellate and reassessment orders were set aside.

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Issues: Whether the Tribunal was justified in deciding the matter on merits after recording a violation of the principles of natural justice and when the assessee sought to rely on material not produced before the Prescribed Authority.

Analysis: The reassessment had been completed ex parte on the basis of material gathered by the Enforcement Authority after the assessee failed to participate or file supporting documents. The appellate authorities had proceeded on the available record, while the Tribunal, after noticing the plea of denial of natural justice, proceeded to consider material produced for the first time before it. Since the foundational appreciation of evidence lies with the Prescribed Authority, the Tribunal could not itself assume that role and decide the controversy on merits without first remitting the matter for fresh consideration and enabling the assessee to substantiate its claim before the proper authority.

Conclusion: The Tribunal was not justified in adjudicating the merits itself, and the matter had to be remitted to the Prescribed Authority for fresh reassessment after giving opportunity to the assessee.

Final Conclusion: The revision succeeded, the appellate order and consequential reassessment orders were set aside, and the dispute was sent back for fresh reassessment in accordance with law.

Ratio Decidendi: Where material is sought to be introduced for the first time and the matter turns on foundational fact-finding, the Tribunal should ordinarily remit the dispute to the original authority rather than decide the merits itself after finding a natural justice violation.

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