Personal hearing before assessment is mandatory; order set aside for breach of natural justice and remitted for fresh decision.

Where section 22(4) of the Tamil Nadu Value Added Tax Act, 2006 required a personal hearing before final assessment, the assessment order could not stand because no such hearing was granted despite objections having been filed. The denial of hearing breached natural justice and deprived the assessee of an opportunity to substantiate its claim. The Madras High Court set aside the assessment order and remitted the matter to the authority for a fresh decision on merits after hearing the assessee in accordance with law.

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Issues: Whether the assessment order could be sustained when no personal hearing was granted before its passing under section 22(4) of the Tamil Nadu Value Added Tax Act, 2006.

Analysis: Section 22(4) requires the authority to afford personal hearing before finalising the assessment where the assessee's contentions are to be considered. The impugned order was passed without granting such hearing, despite objections having been filed. Denial of the hearing amounted to a breach of the principles of natural justice and deprived the assessee of an opportunity to substantiate its claim.

Conclusion: The assessment order was set aside for violation of the requirement of personal hearing, and the matter was sent back to the authority to hear the assessee and pass a fresh order on merits in accordance with law.

Final Conclusion: The writ petition succeeded to the extent of setting aside the impugned order and remitting the matter for reconsideration after hearing the assessee.

Ratio Decidendi: Where the statute mandates personal hearing before final assessment, an order passed without such hearing is vitiated by breach of natural justice and cannot be sustained.

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