Statutory personal hearing cannot be curtailed by circulars; assessment set aside for breach of fair opportunity.

Assessment completed without affording the statutory personal hearing under the Tamil Nadu VAT Act was vitiated. The court held that the pre-assessment notice was served too late to allow a meaningful response, and the assessee's unrebutted affidavit supported the claim of no real opportunity to object. A departmental circular requiring reasonable opportunity could not dilute the proviso to Section 22(4), which mandated personal hearing. The assessment order was therefore set aside for breach of statutory procedure and natural justice, and the matter was remitted for fresh assessment after hearing the assessee and considering its objections.

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Issues: Whether the assessment order was liable to be set aside for failure to afford personal hearing and adequate opportunity before completion of assessment.

Analysis: The pre-assessment notice was served on the assessee only on 12.09.2016, while the assessment order was passed on 30.09.2016, leaving no real opportunity to file objections within the stipulated period. The assessee's explanation for not responding within time was supported by affidavit and remained unrebutted. More importantly, the proviso to Section 22(4) of the Tamil Nadu Value Added Tax Act, 2006 required personal hearing, and the departmental circular could not dilute the statutory mandate. A circular requiring reasonable opportunity had to operate consistently with the statute, and the statutory requirement of personal hearing had to be honoured.

Conclusion: The assessment order was set aside for breach of the requirement of personal hearing and fair opportunity, and the matter was remitted for fresh assessment after granting personal hearing and considering the assessee's objections.

Ratio Decidendi: Where the statute mandates personal hearing, an administrative circular cannot curtail that right, and an assessment completed without affording such hearing is vitiated for violation of statutory procedure and natural justice.

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