Natural justice breach in tax assessment: hearing fixed on a public holiday led to remand for fresh consideration.

An assessment order under Section 84 was set aside because the personal hearing was fixed on a public holiday, which deprived the assessee of an effective opportunity to appear and amounted to a breach of natural justice. The HC remitted the matter for fresh consideration and directed the authority to pass a new order after granting due personal hearing, while expressly leaving the merits of the assessment open for decision.

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Issues: Whether the order passed under Section 84 of the Tamil Nadu Value Added Tax Act, 2006 was liable to be set aside for violation of principles of natural justice on the ground that the hearing date fell on a public holiday, and whether the matter required remand for fresh consideration.

Analysis: The petitioner was called upon to appear for personal hearing on a date which was admittedly a public holiday. In such circumstances, the petitioner was reasonably prevented from appearing, and the authority was not expected to conduct the hearing on that day. The denial of an effective opportunity of personal hearing amounted to a breach of natural justice. The Court, however, did not express any view on the merits of the assessment or on the merits of the petition under Section 84, leaving those questions for the authority to decide afresh.

Conclusion: The order dated 24.09.2018 passed under Section 84 was set aside and the matter was remitted to the respondent to pass a fresh order after granting due opportunity of personal hearing to the petitioner.

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