Fresh assessment after notice and hearing where VAT orders faced challenge over inadequate opportunity and departmental data reliance.

Assessment orders under the Tamil Nadu Value Added Tax regime were not quashed outright despite objections on alleged non-service of notice, lack of independent consideration, and reliance on departmental data. The High Court treated the impugned orders as show cause notices, permitted the assessee to file objections within the prescribed time, required a personal hearing, and directed the Assessing Officer to redo the assessment in accordance with law. Coercive recovery was kept in abeyance meanwhile, and the matter was remitted for fresh consideration.

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Issues: Whether the assessment orders passed under the Tamil Nadu Value Added Tax regime were liable to be set aside for alleged non-service of notice, lack of independent consideration, and reliance on departmental data, or whether the assessee should be given an opportunity to file objections and the matter sent back for fresh assessment.

Analysis: The assessment pattern was identical for all years and was founded on an Enforcement Wing report. The Court noted the assessee's grievance that the pre-revision notice had not effectively resulted in participation in the assessment proceedings and that the assessment was also questioned on the basis of mismatch with departmental data. Instead of annulling the assessments outright, the Court found that the ends of justice would be served by permitting the assessee to place objections before the Assessing Officer. The impugned orders were directed to be treated as show cause notices, objections were to be filed within the stipulated time, personal hearing was to be granted, and the assessment was to be redone in accordance with law. Coercive recovery was restrained meanwhile.

Conclusion: The challenge was not accepted for outright setting aside of the assessment orders, but the assessee was granted a fresh opportunity and the matter was sent back for reconsideration by the Assessing Officer.

Final Conclusion: The dispute was remitted for fresh assessment after affording notice, objections, and personal hearing, while interim recovery was kept in abeyance.

Ratio Decidendi: Where assessment orders are passed in circumstances raising a plausible grievance of inadequate opportunity, the Court may preserve the orders only as notices and require a de novo assessment after objections and hearing, instead of quashing the orders outright.

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