Natural justice requires personal hearing before rectification enhancing assessment where disputed facts and adverse consequences arise.

Under Section 84 of the Tamil Nadu Value Added Tax Act, 2006, a rectification that enhances assessment or penalty must follow notice and a reasonable opportunity of being heard. The Madras HC held that, where adverse consequences and disputed factual issues are involved, reasonable opportunity includes a personal hearing. Because no personal hearing was granted before the assessment was enhanced, the rectification order was vitiated for breach of natural justice and fairness. The order was set aside and the matter was directed to be reheard afresh after affording personal hearing.

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Issues: Whether an order of rectification enhancing the assessment under Section 84 of the Tamil Nadu Value Added Tax Act, 2006 could be sustained when no personal hearing was afforded to the dealer, despite the proviso requiring a reasonable opportunity of being heard.

Analysis: The proviso to Section 84 requires notice and a reasonable opportunity before any rectification that enhances assessment or penalty. The expression reasonable opportunity was held to include personal hearing where the matter involves adverse consequences and disputed factual questions. The Court relied on the settled principle that fairness and natural justice may require an oral hearing, and held that the absence of such hearing vitiated the rectification order.

Conclusion: The rectification order was set aside and the matter was directed to be heard afresh after granting personal hearing.

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