Conditional remand for personal hearing under VAT revision set aside orders subject to prior payment.

A best judgment assessment under the Tamil Nadu Value Added Tax Act was followed by rejection of the revision under Section 22(6). The High Court did not decide whether personal hearing is generally mandatory in a revision under that provision, but on the facts set aside the assessment and rejection orders to permit a fresh hearing. That relief was conditional on prior payment of 15% of the tax due; if the condition was not met, the earlier orders would revive. On compliance, the revision had to be heard afresh and decided in accordance with law.

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Issues: Whether the assessment order and the order rejecting the revision should be set aside and the revision restored for fresh consideration with personal hearing on payment of a portion of the tax due.

Analysis: The matter arose from a best judgment assessment under the Tamil Nadu Value Added Tax Act, 2006, followed by rejection of the revision under Section 22(6). The Court left open the broader question whether personal hearing is mandatory in a revision under Section 22(6), but, on the peculiar facts, directed that the impugned orders be set aside only to enable a personal hearing. The relief was made conditional upon payment of 15% of the tax due before the hearing, failing which the earlier orders would revive. If the condition was satisfied, the respondent was required to hear the revision afresh and pass a fresh order in accordance with law.

Conclusion: The assessee obtained conditional relief by way of setting aside of the impugned orders and remand for fresh consideration after personal hearing, subject to prior payment of 15% of the tax due.

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