Natural justice in assessment proceedings requires effective notice and hearing; unserved notice led to setting aside and remand.

Assessment completed without effective service of notice or a real opportunity of hearing is unsustainable for breach of natural justice. The court found that the postal notice was returned unserved and the alleged e-mail communication did not establish valid service, so the petitioner was not properly notified before the assessment order or thereafter. On that basis, the assessment order and consequential recovery proceedings were set aside, and the matter was remanded to the assessing authority for fresh assessment after due notice and opportunity to be heard.

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Issues: Whether the assessment order and consequential recovery proceedings were liable to be set aside for want of service of notice and denial of opportunity of hearing, resulting in violation of principles of natural justice.

Analysis: The materials placed before the Court showed that the notice sent by post was returned with the endorsement that no such addressee was available at the office, and the alleged e-mail service did not establish effective service on the petitioner. On that basis, the Court found that notice was not served either before the assessment order was passed or thereafter. Since the assessment had been made without effective notice and opportunity, the proceedings suffered from breach of natural justice.

Conclusion: The assessment order and the consequential recovery proceedings were set aside, and the matter was remanded to the assessing authority for fresh completion of assessment after due notice and opportunity to the petitioner.

Final Conclusion: The petitioner obtained relief against the impugned assessment and recovery, but the revenue was left free to proceed afresh in accordance with law after proper notice.

Ratio Decidendi: An assessment made without effective service of notice and a real opportunity of hearing is unsustainable for breach of natural justice and may be set aside with remand for fresh adjudication.

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