Mismatch-based tax assessments must follow prescribed procedure and personal hearing before finalisation, with consequential attachment falling away.

Mismatch-based assessments under the Tamil Nadu Value Added Tax regime were challenged for non-compliance with earlier judicial guidelines and denial of personal hearing. The Court noted that reassessment must begin from the notice of proposal stage, follow the prescribed procedure for mismatch cases, and afford the assessee an opportunity of hearing before finalisation. On that basis, the impugned assessment orders were set aside and the matters were remitted for fresh assessment. The consequential attachment order was also unable to survive once the assessment orders were quashed.

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Issues: Whether the impugned assessment orders relating to mismatch could be sustained, or whether they were liable to be set aside and remitted for fresh assessment after following the earlier guidelines and affording opportunity of hearing.

Analysis: The writ petitions concerned mismatch-based assessments under the Tamil Nadu Value Added Tax regime. The assessment proceedings were challenged as contrary to natural justice and contrary to the procedure earlier indicated by the Court for handling mismatch cases. The Court noted that the Assessing Officer was required to re-do the assessment in accordance with the guidelines already issued, beginning from the stage of notice of proposal, and that the petitioner had to be given a personal hearing before finalisation. Since the impugned orders were set aside, the consequential attachment order also could not survive.

Conclusion: The impugned assessment orders were quashed and the matters were remitted to the Assessing Officer for fresh assessment after issuing notice of proposal, following the prescribed procedure, and granting personal hearing.

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