Natural justice in tax assessment: order quashed for ignoring objections and denying personal hearing before finalisation.

Assessment was quashed for breach of natural justice because the dealer's detailed objections to the pre-revision notice were not meaningfully considered and no personal hearing was given before finalisation. The objections concerned turnover computation, discount treatment, and reversal of input tax credit under the Tamil Nadu Value Added Tax Act, 2006. As the record showed non-consideration of material submissions and denial of hearing, the assessment was held unsustainable and remitted for fresh consideration after affording an opportunity to object and be personally heard.

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Issues: Whether the assessment order was liable to be quashed for violation of natural justice, including failure to afford personal hearing and failure to consider the dealer's objections.

Analysis: The dealer had filed a detailed reply to the pre-revision notice and had raised objections on the computation of turnover, the treatment of discounts, and the applicability of reversal of input tax credit under Section 19(20) of the Tamil Nadu Value Added Tax Act, 2006. The assessment order, however, did not deal with the material objections in a meaningful manner. The record also showed that no personal hearing was afforded before finalising the assessment. In such circumstances, the assessment was found to have been made without properly considering the reply and in breach of the requirement of personal hearing.

Conclusion: The assessment order was quashed and the matter was sent back for fresh consideration after granting opportunity to raise objections and to be personally heard.

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