Natural justice in tax reassessment requires consideration of replies and a personal hearing before finalising adverse orders.

Reassessment orders under the Tamil Nadu Value Added Tax Act were found unsustainable where the dealer's replies to the assessment notices were shown as sent and received, yet the orders did not reflect any consideration of those replies. The record also showed that no personal hearing was granted before finalisation. In tax proceedings, an adverse assessment made without considering the assessee's response and without affording a hearing breaches natural justice and cannot stand. The orders were quashed and the matter was directed for fresh consideration after giving the petitioner an opportunity and personal hearing.

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Issues: Whether the reassessment orders under Section 27(2) of the Tamil Nadu Value Added Tax Act, 2006 were liable to be quashed for non-consideration of the dealer's reply and denial of personal hearing, amounting to violation of natural justice.

Analysis: The dealer produced material showing that replies to the revision of assessment notices had been sent and received, while the Revenue did not produce convincing contra material to establish non-receipt. The assessment orders did not reflect consideration of those replies. The record also showed that no personal hearing was afforded before finalising the assessments. In tax proceedings, where a prejudicial order is made without considering the assessee's response and without giving a hearing, the assessment suffers from breach of natural justice.

Conclusion: The reassessment orders were rightly held unsustainable and were quashed, with a direction for fresh consideration after granting opportunity and personal hearing to the petitioner.

Ratio Decidendi: An assessment order passed without considering the assessee's reply and without affording personal hearing violates the principles of natural justice and cannot be sustained.

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