Web report mismatch assessments require fair hearing and proper enquiry before adverse VAT action is sustained.

Assessment and penalty under the Tamil Nadu VAT Act based on web report mismatch could not be sustained where the dealer was not furnished full details and no personal hearing was shown before adverse action. The Court applied its earlier batch ruling on mismatch assessments, which required a centralized mechanism, proper consultation, and a fair opportunity to the dealer before any adverse assessment. Because the impugned order did not reflect such hearing or enquiry, it was set aside and remitted to the Assessing Authority for fresh consideration in accordance with the earlier directions and after hearing the petitioner.

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Issues: Whether the assessment order and penalty imposed under Section 22(4) of the Tamil Nadu VAT Act could be sustained when passed on the basis of web report mismatch and without affording an opportunity of personal hearing, and whether the matter required remand for fresh consideration.

Analysis: The assessment was challenged on the ground that the authority relied upon web report data without furnishing full details or conducting a proper enquiry, and that penalty was imposed without personal hearing. The Court applied the earlier batch decision dealing with mismatch assessments, which required a centralized mechanism, proper consultation, and a fair opportunity to the dealer before adverse action is taken. On the facts of the present case, the order did not show that any personal hearing had been granted before passing the assessment.

Conclusion: The impugned assessment order could not be sustained and the matter had to be remitted to the Assessing Authority for fresh exercise after following the directions in the earlier batch judgment and after affording an opportunity of hearing to the petitioner.

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