Effective service of show-cause notice is essential; assessment without notice and response opportunity requires fresh adjudication.

Effective service of the material show-cause notice and assessment order is necessary to provide notice and a meaningful opportunity to respond. Where the assessee was unavailable at its principal place of business, the later notice could not be served, and the registered postal cover containing the assessment order was returned, the assessee did not receive either the notice preceding assessment or the assessment order. The resulting denial of notice and opportunity to respond violates principles of natural justice. Such an assessment must be set aside and remitted for fresh adjudication after due notice.

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Issues: Whether the assessment order could be sustained where the assessee was not served with the preceding show-cause notice or the assessment order.

Analysis: The record showed that the later show-cause notice could not be served because the assessee was unavailable at its principal place of business, and that the registered postal cover containing the assessment order was returned. The assessee had therefore not received the notice preceding the assessment or the assessment order, resulting in denial of notice and opportunity to respond.

Conclusion: The assessment violated the principles of natural justice and could not be sustained.

Ratio Decidendi: An assessment made without effective service of the material show-cause notice and assessment order violates principles of natural justice and must be set aside for fresh adjudication after due notice.

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