Personal hearing before reassessment under VAT law was required, leading to quashing of the order and remand.

Reassessment under the Tamil Nadu Value Added Tax Act, 2006 could not be sustained where the dealer disputed that an effective personal hearing was afforded before revision of assessment. The Court noted the departmental circular requiring reasonable opportunity, including personal hearing where necessary, before passing a revision order, and found that the dispute over whether the dealer had been heard warranted further opportunity. The impugned reassessment and consequential bank notice were set aside, and the matter was remanded to the assessing authority for fresh hearing and disposal in accordance with law.

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Issues: Whether the reassessment and consequential bank notice could be sustained when the dealer alleged that no effective opportunity of personal hearing was granted before revision of assessment under the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The dealer asserted that a reply had been submitted in person and that tax had already been paid along with the returns. The Court noted the departmental circular governing revision of assessment, which required that the dealer be given reasonable opportunity and, where required, personal hearing before passing a revision order, and stated that no revision should be made without affording such opportunity under the relevant provisions. In view of the dispute regarding whether the dealer had been heard and the circular-based requirement of hearing, the Court held that one more opportunity ought to be given to the dealer to sustain his claim.

Conclusion: The challenge succeeded. The impugned orders were set aside and the matter was remanded to the assessing authority for fresh hearing and disposal in accordance with law.

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