Natural justice in reassessment requires a real personal hearing before best judgment liability is confirmed.

A reassessment under section 22(2) of the Tamil Nadu Value Added Tax Act was invalid where it was made ex parte without proof of service particulars for the summons or a communicated date for personal hearing. The Court held that, in a best judgment assessment affecting liability, the authority had to afford a reasonable opportunity of oral hearing and fairly consider the available materials; mere non-filing of objections was not enough. The order was set aside for violation of natural justice, and the matter was remanded for fresh consideration after granting personal hearing.

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Issues: Whether the reassessment order passed under section 22(2) of the Tamil Nadu Value Added Tax Act, 2006 was vitiated for denial of personal hearing and violation of principles of natural justice.

Analysis: The assessment was made ex parte after summons were issued and the dealer did not appear. The record did not show service particulars of the summons or any communicated date fixed for personal hearing. The statutory setting, departmental circular, and settled law required that where a dealer seeks or is entitled to a personal hearing, reasonable opportunity of showing cause must include such hearing. A best judgment assessment affecting liability could not be sustained merely because objections were not filed, when the authority had not afforded the mandatory opportunity of oral hearing and had not considered the available materials in a fair manner.

Conclusion: The assessment order was held to be invalid for violation of natural justice and was set aside, with the matter remanded for fresh consideration after granting personal hearing.

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