Natural justice requires a real chance to reply before ex parte tax assessment; order set aside and matter remitted.

An ex parte tax assessment passed without giving a real and sufficient opportunity to reply to the show cause notice is contrary to natural justice. Where the record shows that the assessee did not receive adequate time to respond, the assessment cannot stand and should be set aside. The matter was remitted for fresh consideration from the stage of the show cause notice, with an opportunity to file a reply and participate in the proceedings.

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Issues: Whether an ex parte assessment order passed without affording sufficient opportunity to reply to the show cause notice should be quashed and the matter remitted for fresh consideration.

Analysis: The assessment order was passed ex parte, and the record indicated that the petitioner did not receive adequate time to file a reply to the show cause notice. In these circumstances, continuing with the assessment without a proper opportunity to respond would offend the principles of natural justice. To secure a fair adjudication, the appropriate course was to set aside the order and restore the matter to the stage of issuance of show cause notice so that the petitioner could submit a reply and participate in the proceedings.

Conclusion: The ex parte assessment order was quashed and the matter was remitted to the competent authority for fresh consideration from the stage of show cause notice, with an opportunity to the petitioner to file a reply.

Ratio Decidendi: An ex parte tax assessment order passed without granting a real and sufficient opportunity to respond to the show cause notice is liable to be set aside and the proceedings remitted for fresh adjudication in compliance with natural justice.

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