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of <h1>High Court invalidates VAT assessment orders, emphasizes Natural Justice Principles in administrative proceedings</h1> The High Court set aside four assessment orders under the Tamil Nadu Value Added Tax Act for violation of Natural Justice Principles. The court directed a ... Validity of assessment order - principles of natural justice - according to petitioner the passing of the impugned assessment orders, without granting an opportunity of personal hearing, vitiates the impugned assessment orders - HELD THAT:- It follows as a inevitable sequitur that the principles laid down by a Honourable Division Bench of this Court in SRC PROJECTS PRIVATE LIMITED VERSUS COMMISSIONER OF COMMERCIAL TAXES, CHENNAI AND ANOTHER [2008 (9) TMI 914 - MADRAS HIGH COURT] will apply in all force to the case on hand, where it was held that The impugned order by way of revision of assessment should not have been passed without giving the assessee an opportunity of personal hearing. The assessment orders are set aside solely on the ground of violation of 'NJP' (not acceding to the request for personal hearing), without expressing any opinion whatsoever on merits - petition allowed. Issues Involved:Violation of Natural Justice Principles (NJP) in assessment orders under Tamil Nadu Value Added Tax Act, 2006 for four successive assessment years.Detailed Analysis:1. Common Order for Four Writ Petitions:The judgment disposes of four writ petitions involving the same parties. The central theme across all petitions pertains to the violation of Natural Justice Principles (NJP) in the assessment orders under the Tamil Nadu Value Added Tax Act, 2006 for the years 2012-13, 2013-14, 2014-15, and 2015-16.2. Nature of Business and Inspection:The petitioner, engaged in civil construction work, underwent surprise inspections by enforcement officials. The primary issue highlighted was the deduction of tax at source. Despite various grounds raised, the focus shifted to the violation of NJP during the proceedings.3. Violation of Natural Justice Principles:The crux of the matter revolved around the denial of a personal hearing to the petitioner before passing the assessment orders. Citing a judgment from a Division Bench, it was argued that the request for personal hearing, when made, should be granted as per the provisions of the TNVAT Act.4. Legal Provisions and Parity with TNGST Act:Comparisons were drawn between Section 27 of the TNVAT Act and Section 16(1) of the Tamil Nadu General Sales Tax Act, 1959 (TNGST Act), highlighting the similarity in provisions. The judgment emphasized the application of principles laid down in previous cases to ensure fairness in proceedings.5. Court's Decision and Directions:In light of the arguments presented, the High Court set aside all four assessment orders solely on the grounds of NJP violation. The court directed the fourth respondent to provide a personal hearing to the petitioner, setting a specific date and time for the hearing. Failure to attend the hearing would result in the revival of the impugned orders.6. Final Disposition:The judgment concluded by disposing of the four writ petitions with the outlined directions, emphasizing the importance of adhering to Natural Justice Principles in administrative proceedings. No costs were awarded, and all connected petitions were closed, bringing closure to the legal dispute.This detailed analysis encapsulates the key aspects of the judgment, focusing on the issues raised, legal arguments presented, relevant provisions invoked, and the court's final decision and directives.
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