Natural justice in VAT assessment requires consideration of objections and hearing before fresh reassessment

An assessment made without considering the assessee's objections and the relevant compounding arrangement and government order under the Tamil Nadu VAT Act was held liable to be reconsidered. As the assessment proceeded on the mistaken footing that no objection had been filed, the authority was required to re-examine the petitioner's submissions and afford a personal hearing. The assessment order was therefore set aside and the matter remanded for fresh assessment in accordance with law.

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Issues: Whether the assessment order was liable to be set aside and the matter remanded for fresh consideration after taking into account the petitioner's objections, the compounding scheme, and the effect of the relevant government order under the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The petitioner had asserted that it had filed objections to the notice and had specifically relied upon the compounding arrangement and the government order said to operate from 01.04.2012. The assessment was nevertheless made on the footing that no objection had been received. In these circumstances, the assessment required reconsideration by the assessing authority after examining the petitioner's submissions and after giving an opportunity of personal hearing.

Conclusion: The assessment order was set aside and the matter was remanded to the respondent for fresh assessment after considering the petitioner's objections and affording personal hearing.

Final Conclusion: The petitioner obtained a remand for de novo consideration, with the assessment to be completed afresh in accordance with law after hearing the petitioner.

Ratio Decidendi: An assessment made without considering the assessee's objections and the relevant beneficial statutory arrangement or government order is liable to be set aside and remanded for fresh adjudication with observance of natural justice.

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