Natural justice in tax assessment bars denial of hearing and requires independent reconsideration before fresh assessment.

Assessment orders under the Tamil Nadu Value Added Tax Act were found vulnerable where objections were filed and personal hearing was expressly sought, yet the assessing authority proceeded without considering the objections or granting a hearing. That omission was treated as a breach of natural justice, and the availability of an alternate statutory appeal did not prevent writ intervention because denial of natural justice is a recognised exception to the alternate-remedy rule. The assessment was also required to be made independently, not merely on the basis of an Enforcement Wing proposal. The matter was therefore required to be remanded for fresh assessment after hearing the taxpayer and considering the objections in accordance with law.

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Issues: Whether the assessment orders were vitiated for non-consideration of the objections and denial of personal hearing, and whether the petitioner should be relegated to the statutory appellate remedy.

Analysis: The assessment proceedings arose under the Tamil Nadu Value Added Tax Act on a self-assessment/deemed assessment basis, and the impugned revision notices proposed reassessment and penalty. The record showed that the petitioner had filed objections and specifically sought personal hearing, but the assessing authority proceeded to pass the assessment orders without affording such hearing and without considering the objections. In these circumstances, the defect amounted to a violation of the principles of natural justice. The existence of an alternate appeal remedy did not bar writ interference because denial of natural justice is a recognised exception to the rule of alternate remedy. The fresh assessment was also required to be made independently and not merely on the basis of the Enforcement Wing proposal.

Conclusion: The assessment orders were liable to be set aside and the matter was required to be remanded for fresh assessment after granting personal hearing and considering the objections in accordance with law.

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