Yarn manufacturer wins appeal for lack of personal hearing in TNVAT Act assessment orders.

The court set aside the assessment orders challenged by a yarn manufacturer under the TNVAT Act, 2006, due to a lack of a proper opportunity for a personal hearing, which violated principles of natural justice. Emphasizing the importance of a personal hearing before passing assessment orders, the court remanded the matter for fresh consideration, directing the respondent to provide the petitioner with a personal hearing and issue orders within one month. The writ petitions were disposed of without costs, and connected miscellaneous petitions were closed.

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Issues:
Challenging assessment orders on grounds of violation of principles of natural justice.

Analysis:
The petitioner, a manufacturer of yarn, challenged assessment orders for multiple years under TNVAT Act, 2006, citing violation of natural justice principles. The petitioner had filed returns for the relevant years, which were deemed assessed. However, a revision notice was issued by the respondent after an inspection, highlighting discrepancies. The petitioner submitted objections, but the final orders were passed without a proper opportunity for a personal hearing. The court noted discrepancies in the timeline of events, indicating a lack of sufficient time for the respondent to conduct a personal hearing before passing the orders.

The court emphasized the importance of providing an opportunity for a personal hearing before passing assessment orders, citing previous cases and instructions from the Commissioner of Commercial Taxes. Referring to a Supreme Court case, it reiterated that even in the absence of a specific provision, a hearing is necessary unless excluded by law. The court concluded that the impugned orders, lacking a proper opportunity for a personal hearing, violated the principles of natural justice.

Consequently, the court set aside the assessment orders and remanded the matter back to the respondent for fresh consideration. The respondent was directed to provide the petitioner with a proper opportunity for a personal hearing and pass orders within one month from the date of receiving the court's order. The writ petitions were disposed of with no costs, and connected miscellaneous petitions were closed.

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