Mandatory personal hearing before best judgment assessment; failure to hear the dealer breaches natural justice and invalidates the order.

Section 22(4) of the Tamil Nadu Value Added Tax Act, 2006 requires a reasonable opportunity of personal hearing before best judgment assessment is made. Where the assessment order was passed without affording that hearing, and the record showed no compliance with the mandatory safeguard, the order was vulnerable for breach of natural justice because the dealer was denied an effective chance to explain the return filings and supporting claim. The impugned order was therefore unsustainable and was set aside, with the matter remitted for fresh consideration after personal hearing.

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Issues: Whether the assessment order was liable to be set aside for non-compliance with the mandatory requirement of affording personal hearing under Section 22(4) of the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The provision governing assessment under Section 22(4) required that, before proceeding to best judgment assessment, the dealer be given a reasonable opportunity of being heard. The order was passed without affording such personal hearing, and the record did not show compliance with this mandatory safeguard. The absence of an effective opportunity to explain the return filings and supporting claim amounted to violation of natural justice.

Conclusion: The impugned order was unsustainable and was set aside, with the matter remitted for fresh consideration after providing personal hearing.

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