Natural justice in tax assessment requires personal hearing before a speaking order; assessment set aside and remanded.

Failure to afford personal hearing and a reasonable opportunity before passing an assessment order under the Tamil Nadu Value Added Tax Act, 2006 vitiated the order. The assessee had sought further time and clarification, but the assessing authority proceeded without waiting for the reply or granting a hearing. In light of the departmental clarification and circular requiring a speaking order after reasonable opportunity, the absence of personal hearing, even where objections were not fully filed, amounted to a breach of natural justice. The assessment order was set aside and the matter remanded for fresh consideration after hearing the assessee and considering objections.

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Issues: Whether the assessment order was vitiated for failure to afford personal hearing and reasonable opportunity before passing the order under the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The petitioner had sought further time and clarification before the impugned order was passed, but the assessing authority proceeded without waiting for the reply or granting personal hearing. The departmental clarification and circular emphasised that reasonable opportunity, including personal hearing, had to be given before passing a speaking order. The absence of personal hearing, notwithstanding the non-filing or incomplete filing of objections, amounted to violation of the principles of natural justice.

Conclusion: The assessment order was set aside and the matter was remanded for fresh consideration after affording personal hearing and considering the objections.

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