Denial of personal hearing in tax assessment breached natural justice, leading to quashing and remand for fresh assessment.

Assessment orders under the Tamil Nadu Value Added Tax Act were invalid where the dealer had specifically sought a personal hearing and it was not granted. The proviso to Section 27 requires a reasonable opportunity to show cause before an order is passed, and the court treated the earlier sales tax provision as in pari materia. Refusal of the requested hearing was held to breach both the statutory mandate and natural justice, so the assessments were set aside and the matter remitted for fresh assessment after hearing the dealer.

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Issues: Whether the impugned assessment orders under the Tamil Nadu Value Added Tax Act, 2006 were vitiated for denial of personal hearing and violation of natural justice.

Analysis: The assessment was made under Section 27 of the Tamil Nadu Value Added Tax Act, 2006, whose proviso bars passing an order under sub-sections (1) and (2) without giving the dealer a reasonable opportunity to show cause. The corresponding earlier provision under the Tamil Nadu General Sales Tax Act, 1959 was treated as in pari materia. Since a specific request for personal hearing had been made and not granted, the assessment orders were held to have been passed in breach of the statutory requirement and natural justice.

Conclusion: The denial of personal hearing vitiated the assessment orders, which were set aside and the matter was remitted for fresh assessment after affording personal hearing.

Final Conclusion: The writ petitions succeeded on the limited ground of violation of natural justice, with the assessments quashed and the authority directed to proceed afresh after hearing the petitioner.

Ratio Decidendi: Where the statute mandates a reasonable opportunity to show cause and a specific request for personal hearing is made in assessment proceedings, refusal of such hearing invalidates the resulting assessment order.

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