Denial of personal hearing in reassessment proceedings rendered the tax orders unsustainable and required fresh consideration.

Reassessment orders under the Tamil Nadu Value Added Tax Act, 2006 were held unsustainable because the contemporaneous assessment records did not show that an effective personal hearing had been granted before completion of the reassessments. The record referred only to the proposal notice and the dealers' objections, and did not support the revenue's claim of hearing. As denial of an essential pre-decisional opportunity, the assessments were set aside and the matter was remitted for fresh orders after affording personal hearing.

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Issues: Whether the assessment orders were liable to be set aside for want of an effective opportunity of personal hearing before completion of the reassessments under the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The assessment records referred to the notice of proposal and the dealers' objections, but did not contain any reference to a notice of personal hearing. The contemporaneous record in the impugned orders therefore did not support the revenue's assertion that personal hearing had been granted. Since the assessee's objection went to denial of an essential pre-decisional opportunity, the assessment orders were found unsustainable and the matter required reconsideration by the Assessing Officer after affording such hearing.

Conclusion: The assessee succeeded on the ground of denial of personal hearing, and the assessment orders were set aside with a direction to pass fresh orders after granting an opportunity of personal hearing.

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