Effective opportunity of personal hearing under tax law must be given before assessment; denial vitiates the order.

An assessment completed without granting an effective opportunity of personal hearing under Section 27 of the Tamil Nadu Value Added Tax Act, 2006 was held to violate natural justice. The record showed that the assessee had sought additional time and faced difficulties arising from the COVID-19 pandemic, yet the order was passed without personal hearing. Since the statutory requirement of an effective opportunity includes a hearing, the assessment was set aside. Fresh assessment proceedings were directed to be initiated and completed de novo within the time fixed by the Court.

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Issues: Whether the assessment order was liable to be set aside for violation of the assessee's right to an effective opportunity of personal hearing under Section 27 of the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The assessee had filed a reply seeking additional time and the record showed difficulties arising from the COVID-19 pandemic. The assessment order was passed without affording an opportunity of personal hearing. Since Section 27 contemplates an effective opportunity, which includes personal hearing, the absence of such hearing amounted to breach of natural justice.

Conclusion: The assessment order was rightly set aside in favour of the assessee.

Final Conclusion: Fresh assessment proceedings were directed to be initiated and completed de novo within the time fixed by the Court.

Ratio Decidendi: Where the statute requires an effective opportunity, denial of personal hearing before completing the assessment vitiates the order for breach of natural justice.

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