Mandatory personal hearing under VAT law; assessment set aside for breach of natural justice and premature finalisation.

A statutory personal hearing requirement under the Tamil Nadu VAT framework was treated as mandatory, and an assessment order passed without granting the requested hearing was held to violate natural justice. The authority had also proceeded before the extended time given for reply had expired, which compounded the defect. Prior supply of documents and an opportunity for written objections did not cure the absence of a personal hearing before finalisation. The impugned orders were set aside and the matter was remitted for fresh consideration after affording personal hearing and passing orders in accordance with law.

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Issues: Whether the impugned assessment orders were liable to be set aside for want of personal hearing under Section 22(4) of the Tamil Nadu Value Added Tax Act and for being passed before the time granted to the assessee had expired.

Analysis: The petitioner had specifically sought a personal hearing after receiving the relevant materials and also sought further time to reply. The authority nevertheless passed the final orders before the expiry of the extended time and without granting the requested hearing. The requirement of personal hearing under Section 22(4) was treated as mandatory, and the denial of that opportunity amounted to violation of natural justice. The prior grant of documents and opportunity to submit written objections did not cure the defect, because a personal hearing was still required before finalising the matter.

Conclusion: The impugned orders could not be sustained and were set aside. The petitioner was directed to appear before the authority on the specified date and the authority was directed to afford personal hearing and pass fresh orders in accordance with law.

Ratio Decidendi: Where a statute mandates personal hearing, an assessment order passed without granting that hearing and before the expiry of the time granted for response is vitiated for breach of natural justice.

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