Ex parte tax orders set aside where assessee lacked a fair chance to reply and place supporting material.

Ex parte tax orders under Section 73 were set aside because the affected assessee had not been given a fair opportunity to respond to the show cause notices, and the disputed discrepancy issue required consideration of material not placed before the authority. The matter was remitted to the stage of reply so that the assessee could file its defence and supporting material before fresh consideration on merits. Contentions were kept open, and the challenge to the notifications was not adjudicated in view of the remand.

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Issues: Whether the ex parte orders passed under Section 73 of the tax statutes were liable to be set aside and the matter remitted to the stage of reply to the show cause notices.

Analysis: The orders were passed ex parte and the petitioner asserted that the alleged discrepancy between the returns and the supplier data could be demonstrated by material not considered earlier. The matter also involved identical observations in the connected order, and both orders were based on similar discrepancy findings. In these circumstances, the authority's orders were found fit to be set aside so that the petitioner could place its reply and supporting material before the assessing authority. Contentions were kept open.

Conclusion: The ex parte orders were set aside and the matter was remitted to the stage of reply to the show cause notices.

Final Conclusion: The proceeding was restored for fresh consideration on merits after affording an opportunity of reply, and the challenge to the notifications was not adjudicated in view of the remand.

Ratio Decidendi: An ex parte tax order may be set aside and remitted where the affected party has not had a fair opportunity to respond and the disputed factual issue requires consideration of material not previously placed before the authority.

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