Natural justice in escaped turnover assessment requires hearing and consideration of documents before adverse tax orders

Assessment orders under Section 27 of the Tamil Nadu Value Added Tax Act were set aside for breach of natural justice because the dealer was not given a reasonable opportunity of hearing and the documentary evidence produced was not properly considered. The court held that, in escaped turnover proceedings, the authority must provide a personal hearing and conduct a proper enquiry before making an adverse order. The matter was remitted for fresh consideration on merits after granting a reasonable opportunity of hearing.

---

---

Issues: Whether the assessment orders passed under Section 27 of the Tamil Nadu Value Added Tax, 2006 were liable to be set aside for want of a reasonable opportunity of hearing and consideration of the documents produced by the dealer.

Analysis: The assessment related to escaped turnover under Section 27 of the Tamil Nadu Value Added Tax, 2006, which required the dealer to be given a reasonable opportunity before any adverse order was made. The orders were passed without affording personal hearing, and the documentary evidence filed by the dealer was not duly considered. In such circumstances, the orders were found to be in breach of the principles of natural justice.

Conclusion: The assessment orders were set aside and the matter was remitted to the authority for fresh consideration on merits after granting a reasonable opportunity of personal hearing and conducting a proper enquiry.

---