Personal hearing is mandatory in tax clarification proceedings before fixing liability; ex parte order was set aside and remitted.

A clarification fixing tax at 14.5% was held unsustainable because the taxpayer was not afforded a personal hearing before the order was passed under Rule 12-A of the Tamil Nadu Value Added Tax Rules, 2007. As the clarification procedure contemplated notice and hearing where required, the absence of an opportunity to be heard vitiated the proceedings. The impugned clarification was set aside, and the matter was remitted to the authority for a fresh order after notice and personal hearing.

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Issues: Whether the clarification fixing tax at 14.5% could be sustained when no personal hearing was afforded before passing the order under Rule 12-A of the Tamil Nadu Value Added Tax Rules, 2007.

Analysis: The order was passed without granting the petitioner an opportunity of personal hearing. Since the clarification procedure contemplated notice and hearing when required, the absence of such opportunity vitiated the impugned proceedings.

Conclusion: The impugned clarification was set aside and the matter was remitted to the authority to pass a fresh order after notice and personal hearing.

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