Personal hearing required before tax assessment, with fresh consideration ordered after remand and partial deposit condition.

An assessment under the Tamil Nadu Value Added Tax Act, 2006 was set aside because the petitioner was not granted a personal hearing despite a specific request in reply. The Court treated the hearing requirement as mandatory on the facts, relied on the earlier decision cited before it, and held that the assessment could not stand without an effective opportunity to be heard and consideration of the reply on merits. The matter was remitted for fresh consideration after granting personal hearing, subject to deposit of 20% of the demanded tax within the stipulated time.

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Issues: Whether the assessment order was liable to be set aside for failure to grant the petitioner a personal hearing before passing the order under the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The order was challenged on the ground that, despite a specific request in the reply, no personal hearing was afforded before completion of the assessment. The Court treated personal hearing as mandatory in the facts of the case and relied on the earlier decision cited before it, while also noticing the petitioner's willingness to deposit 20% of the tax demand to show bona fides. In these circumstances, the assessment could not be sustained without affording the petitioner an effective hearing and considering the reply on merits.

Conclusion: The impugned order was set aside and the matter was remitted to the respondent for fresh consideration after granting personal hearing, subject to deposit of 20% of the demanded tax within the time stipulated.

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