Personal hearing required before deciding rectification requests where turnover correctness is disputed under tax law

An intimation on a rectification application under the Tamil Nadu Value Added Tax Act could not be sustained without first granting a personal hearing where the request involved a dispute on the correctness of reported turnover. The court held that, in such circumstances, procedural fairness required the assessing authority to hear the affected party before deciding the rectification request. The matter was therefore remitted for a personal hearing and fresh orders.

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Issues: Whether an intimation passed on an application for rectification under Section 84 of the Tamil Nadu Value Added Tax Act, 2006 could be sustained without affording the petitioner a personal hearing.

Analysis: The challenge was confined to the absence of a personal hearing before passing the impugned intimation on the rectification application. Since the dispute was short and concerned the correctness of the reported turnover, the matter warranted an opportunity of hearing before the assessing authority took a decision on the rectification request.

Conclusion: The petitioner was entitled to be heard before orders were passed on the rectification application.

Final Conclusion: The matter was sent back to the assessing authority for a personal hearing and fresh orders, thereby protecting the petitioner's right to procedural fairness.

Ratio Decidendi: When a rectification request under the tax statute is decided, an affected party must be afforded a personal hearing where the circumstances show a dispute requiring consideration of factual correctness.

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