Natural justice in reassessment: assessment set aside for failure to furnish the inspection report and consider objections.

An assessment under the Tamil Nadu Value Added Tax Act was set aside because the assessee was not furnished the inspection report relied on by the Enforcement Wing and the objections filed, including bank statements, were not meaningfully considered. The HC held that completing reassessment without supplying the material sought and without giving an effective opportunity to rebut it violated the principles of natural justice. The assessment was annulled and the matter remitted for fresh consideration, with directions to furnish the inspection report and afford objection and personal hearing.

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Issues: Whether the assessment order was liable to be set aside for breach of natural justice on account of non-furnishing of the inspection report and non-consideration of the assessee's objections.

Analysis: The reassessment notice was issued under the Tamil Nadu Value Added Tax Act, 2006, and the assessee had filed detailed objections including bank statements. The order did not deal with the request for furnishing of the inspection report relied upon by the Enforcement Wing, and the assessment was completed without supplying the material sought for or considering the objections on record. This resulted in denial of an effective opportunity to meet the proposal and amounted to violation of the principles of natural justice.

Conclusion: The assessment order could not be sustained and was set aside, with the matter remitted for fresh consideration after furnishing the inspection report and affording opportunity of objection and personal hearing.

Final Conclusion: The impugned assessment was annulled and the dispute was sent back for de novo adjudication in accordance with law.

Ratio Decidendi: An assessment made without supplying the material relied on and without affording a meaningful opportunity to rebut it violates natural justice and is liable to be set aside.

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