Natural justice in appellate proceedings requires service of the departmental statement and a fair chance to reply before disposal.

Where the appellate rules require service of the departmental representative's written statement and an opportunity to reply, disposal of the appeal without such service violates natural justice and renders the order unsustainable; the appellate order was quashed and the matter remanded for fresh disposal after supply of the statement to the assessee. The Court also noted disparity in pendency between Tribunal benches and directed the Principal Secretary to expedite amendment of the Tribunal Regulations and consequential administrative steps needed to redistribute work and confer territorial jurisdiction on the Coimbatore Bench.

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Issues: (i) Whether the appellate order was vitiated for violation of natural justice because the departmental representative's written statement was not served on the assessee before disposal of the appeal; (ii) Whether directions were warranted to expedite amendment of the Tribunal Regulations to redistribute work and confer territorial jurisdiction on the Coimbatore Bench.

Issue (i): Whether the appellate order was vitiated for violation of natural justice because the departmental representative's written statement was not served on the assessee before disposal of the appeal.

Analysis: Rule 14(5) of the Tamil Nadu Value Added Tax Rules, 2007 requires the departmental representative to file a written statement and the appellant to be given an opportunity to reply. The assessee specifically pleaded non-service of the written statement, and that plea was not controverted in the counter affidavit. Non-supply of the written statement deprived the assessee of the opportunity of reply and offended the procedural safeguard built into the rule.

Conclusion: The appellate order was held to be unsustainable and was quashed, with remand for fresh disposal after serving the departmental representative's written statement on the assessee.

Issue (ii): Whether directions were warranted to expedite amendment of the Tribunal Regulations to redistribute work and confer territorial jurisdiction on the Coimbatore Bench.

Analysis: The material placed before the Court showed disparity in pendency between the benches and the need for redistribution of work. It was also brought out that amendment of Regulation 9 of the Tamil Nadu Value Added Tax Appellate Tribunal Regulations, 2011 would be necessary for conferring territorial jurisdiction and effecting such redistribution.

Conclusion: A direction was issued to the Principal Secretary to Government to expedite the process of amendment and consequential administrative action.

Final Conclusion: The writ petition succeeded on the ground of breach of the assessee's hearing rights, and the Court also issued an administrative direction to move the Tribunal restructuring process forward.

Ratio Decidendi: Where a statutory appellate rule requires supply of the departmental representative's written statement and an opportunity to reply, disposal of the appeal without such service violates natural justice and warrants quashing with remand.

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