Fair hearing in reassessment matters requires disclosure of material and adequate opportunity before adverse action is sustained.

A reassessment under the Tamil Nadu Value Added Tax Act was held unsustainable because the assessee was not given a fair opportunity to respond to third-party cross-verification material. The authority did not furnish invoice-wise particulars or the full addresses of the alleged purchasers despite requests, leaving the assessee unable to produce an effective reply. The order was therefore set aside for denial of fair hearing, and the matter was remitted for fresh consideration after granting adequate opportunity, subject to deposit of 25% of the tax demanded.

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Issues: Whether the reassessment order was liable to be set aside for want of adequate opportunity and whether the matter should be remitted for fresh consideration.

Analysis: The notice under Section 27 of the Tamil Nadu Value Added Tax Act, 2006 led to a revisional assessment based on third-party cross-verification. The assessee sought invoice-wise particulars and the full addresses of the alleged purchasers to enable an effective reply, but the authority proceeded without furnishing the requested material or affording sufficient opportunity to produce documents. In these circumstances, the order suffered from a denial of fair hearing and could not be sustained. The Court also accepted that the dispute could be re-examined by the authority after the assessee was given a further opportunity, subject to deposit of a part of the demand as directed.

Conclusion: The impugned order was set aside and the matter was remitted to the authority for fresh consideration after granting sufficient opportunity to the assessee, subject to deposit of 25% of the tax demanded.

Final Conclusion: The assessment was reopened for a fresh decision on merits, with the assessee retaining an opportunity to contest the demand upon compliance with the directed deposit.

Ratio Decidendi: An assessment or revisional order passed without affording a fair opportunity to produce material documents and respond effectively cannot be sustained and may be set aside with a remand for fresh adjudication.

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