Natural justice and tax security: repeated hearing opportunities and revenue protection justified additional security for arrears.

Statutory notice and repeated hearing opportunities were held sufficient where the assessee did not appear personally or through a representative, so the natural justice challenge to the revisional order failed. The court also treated the direction to furnish additional security as a valid revenue-protective measure under the Tamil Nadu Value Added Tax Act, 2006 and the Rules, because substantial tax arrears and default were found. Financial difficulty and pendency of proceedings under the Sick Industrial Companies (Special Provisions) Act, 1985 did not, by themselves, override the obligation to secure collected tax or invalidate the measure. The revised security requirement was therefore upheld and the writ petition dismissed.

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Issues: (i) Whether the revisional order directing furnishing of additional security was vitiated for want of reasonable opportunity of hearing and violation of principles of natural justice. (ii) Whether the direction to furnish additional security could be interfered with in view of the petitioner's financial difficulties and the pendency of proceedings under the Sick Industrial Companies (Special Provisions) Act, 1985.

Issue (i): Whether the revisional order directing furnishing of additional security was vitiated for want of reasonable opportunity of hearing and violation of principles of natural justice.

Analysis: Notice was issued, objections were invited and personal hearing was granted before the original authority. In revision, summons were issued on more than one occasion, adjournment was sought and granted, and the matter was fixed again for hearing. The petitioner did not appear either personally or through a representative. A request for adjournment sent by fax did not amount to availing the hearing. The opportunity to be heard having been provided, the grievance of denial of natural justice was not established.

Conclusion: The challenge on the ground of violation of natural justice failed.

Issue (ii): Whether the direction to furnish additional security could be interfered with in view of the petitioner's financial difficulties and the pendency of proceedings under the Sick Industrial Companies (Special Provisions) Act, 1985.

Analysis: The authorities found substantial tax arrears and the petitioner to be a regular defaulter. The additional security was imposed to safeguard the interest of revenue under the statutory power conferred by the Tamil Nadu Value Added Tax Act, 2006 and the Rules. The revisional authority also examined the quantum of security and reduced it. Pendency before the industrial sickness forum did not, by itself, displace the statutory obligation to remit collected tax or render the revenue-protective measure illegal.

Conclusion: The direction to furnish additional security was upheld.

Final Conclusion: No procedural irregularity or legal infirmity was found in the impugned order, and the writ petition was dismissed.

Ratio Decidendi: Where statutory notice and hearing opportunities are afforded but not availed, and the revenue authority acts within the power conferred to secure tax arrears, the order cannot be set aside on the grounds of natural justice or financial hardship alone.

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