Natural justice in entry tax assessment: personal hearing required, with the matter remanded for fresh consideration of VAT set-off claim.

The Madras HC set aside an entry tax assessment where the assessee had not filed objections to the proposal notice but was also not given a personal hearing. The Court held that the matter required reconsideration and directed de novo assessment after affording reasonable opportunity of hearing. On remand, the assessee was permitted to place all relevant materials before the assessing officer, including its claim for set off of VAT against entry tax liability, and the officer was to decide the issue afresh.

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Issues: Whether the assessment order under the entry tax law could be set aside and the matter remanded for fresh consideration in the absence of a personal hearing and with the assessee seeking to raise the question of set off of VAT against entry tax liability.

Analysis: The assessment was made after the assessee failed to file objections to the proposal notice, but the assessing authority had also not granted a personal hearing. In these circumstances, the matter warranted reconsideration. The assessee was permitted to place all relevant materials before the assessing officer on remand, including its claim regarding set off of VAT against entry tax liability, and the officer was directed to decide the matter afresh after affording reasonable opportunity of hearing.

Conclusion: The impugned assessment order was set aside and the matter was remanded for de novo assessment after giving the assessee an opportunity of hearing. The assessee succeeded in obtaining remand and further consideration of its claim.

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