Equitable relief in ex parte assessment allowed on conditional deposit, with remand for fresh consideration of turnover reconciliation.

Ex parte assessment and rejection of a belated appeal were interfered with where the assessee had not responded to the show-cause notice or produced supporting documents, but offered an explanation for non-participation and raised issues on turnover reconciliation. The HC held that an opportunity should be granted on equitable terms, and made relief conditional on further deposit because 10% of the disputed tax had already been paid at the appellate stage. On deposit of the balance 15%, the appellate order and assessment order were set aside and the matter was remitted for fresh consideration by the authority.

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Issues: Whether the ex parte assessment and the order rejecting the belated appeal were liable to be interfered with and the matter remitted on conditions.

Analysis: The assessment was passed ex parte after the assessee did not respond to the show-cause notice or produce supporting documents. The Court took note of the explanation offered for non-participation and the merits of the alleged discrepancies in turnover reconciliation, and held that an opportunity should be granted on equitable terms. Since 10% of the disputed tax had already been deposited at the appellate stage, the Court required deposit of the balance 15% as a condition for relief.

Conclusion: The writ petition was allowed conditionally, the impugned appellate order and assessment order were set aside upon deposit of 15% of the disputed tax, and the matter was remitted for fresh consideration by the authority.

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