Natural justice in VAT assessment: final order by a different officer after delay led to remand for fresh consideration.

An assessment under the Tamil Nadu Value Added Tax regime was treated as vitiated where, after a show cause notice, objections and a personal hearing, the final order was passed by a different officer after about two years. The Madras High Court regarded this as a denial of an effective opportunity of hearing and a breach of natural justice, relying on its earlier order in the petitioner's own case and Section 22(4) of the Tamil Nadu Value Added Tax Act, 2006. The matter was remanded for fresh assessment, and the taxpayer's claim under Section 23 was directed to be considered on remand.

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Issues: Whether the assessment order was liable to be set aside for breach of natural justice on the ground that, after the show cause notice and personal hearing, the final order was passed by a different officer after a long delay and without affording an effective opportunity of hearing.

Analysis: The assessment was made under the Tamil Nadu Value Added Tax regime. The notice had been issued and objections received, but the final order was passed after about two years and by a different officer. The Court treated this as a denial of proper opportunity of hearing and followed the earlier order in the petitioner's own case, where similar facts had led to setting aside of the assessment for violation of Section 22(4) of the Tamil Nadu Value Added Tax Act, 2006 and the principles of natural justice. The Court also directed that the petitioner's claim under Section 23 of the Tamil Nadu Value Added Tax Act, 2006 be considered on remand.

Conclusion: The assessment order was set aside and the matter was remanded for fresh assessment after affording due opportunity of hearing to the petitioner.

Ratio Decidendi: An assessment order passed without a proper personal hearing, and after inordinate delay with the final order rendered by a different officer than the one who heard the objections, is liable to be set aside for violation of natural justice and remitted for fresh consideration.

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