Natural justice in VAT assessment: notice, objections and personal hearing required before finalisation of revised proceedings.

The Madras High Court held that, where the assessee had received a pre-revision notice but had not filed objections before assessment was confirmed, the matter should be reopened if the assessee seeks to raise factual and legal contentions, including a plea under Section 87-A of the Tamil Nadu Value Added Tax Act. The Court found that the assessee ought to be afforded an opportunity to submit objections and be personally heard before finalisation. The impugned proceedings were therefore quashed and the assessment was remanded to the authority for fresh consideration in accordance with law.

---

---

Issues: Whether the impugned assessment should be quashed and the matter remanded for fresh consideration after granting the assessee an opportunity to file objections, including the plea based on Section 87-A of the Tamil Nadu Value Added Tax Act.

Analysis: The assessee had received the pre-revision notice and sought time, but no objections were filed before the assessment was confirmed. In view of the plea that Section 87-A of the Tamil Nadu Value Added Tax Act applied, the Court found that the assessee ought to be given an opportunity to place objections and raise both factual and legal contentions before the authority. The proper course was to set aside the impugned proceedings and direct reconsideration after hearing the assessee.

Conclusion: The impugned proceedings were quashed and the matter was remanded to the respondent for fresh consideration after permitting the assessee to file objections and after granting an opportunity of personal hearing.

---