Natural justice in tax revision requires formal personal hearing notice; informal discussion cannot replace statutory notice.

Section 27 of the Tamil Nadu Value Added Tax Act, 2006 was held to require a formal personal hearing notice before revision of a deemed assessment. Informal discussion with the assessing authority was not a substitute for such notice, and the absence of an independent hearing notice amounted to non-compliance with natural justice. The Court also noted that the dispute over the actual use of furnace oil and LSHS oil required fresh examination and inspection. The revision orders were therefore quashed, and the matter was remitted to the assessing authority for fresh orders after issuing a pre-revision notice and affording personal hearing, with all contentions kept open.

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Issues: Whether the revision orders were vitiated for non-issuance of a specific personal hearing notice under the Tamil Nadu Value Added Tax Act, 2006, warranting quashing and remand.

Analysis: The assessments had been made on deemed assessment basis and were sought to be revised on the premise that the input tax credit availed on furnace oil and LSHS oil was liable to be reversed. The Court held that section 27 of the Tamil Nadu Value Added Tax Act, 2006 contemplated a personal hearing and that informal discussions with the assessing authority could not substitute a formal notice fixing such hearing. Since no independent personal hearing notice had been issued, the requirement of natural justice was not satisfied. The Court also noted that the factual controversy regarding the actual use of the furnace oil could be properly resolved only after a fresh study and inspection.

Conclusion: The impugned orders were vitiated and were quashed. The matter was remitted to the assessing authority for fresh orders after issuing a fresh pre-revision notice and affording personal hearing, with all contentions left open.

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