Mandatory personal hearing before assessment leads to setting aside ex parte tax order and remand for fresh consideration.

Section 27 of the Tamil Nadu Value Added Tax Act, 2006 requires a reasonable opportunity before assessment, and personal hearing under Section 27(4) is mandatory. An ex parte assessment made after the assessee failed to respond to notice, without granting the required hearing, could not be sustained. The Madras HC set aside the assessment and remitted the matter for fresh assessment, directing the authority to afford reasonable opportunity, including personal hearing, and requiring the assessee to produce its records.

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Issues: Whether the assessment order could be sustained when passed without affording reasonable opportunity and personal hearing under the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The writ petition challenged an assessment completed ex parte after the assessee did not respond to the notice. The order records that Section 27 of the Tamil Nadu Value Added Tax Act, 2006 contemplates reasonable opportunity and that personal hearing under Section 27(4) is mandatory. In the facts of the case, the assessee had not replied to the notice during the pandemic period, and the assessment was made without giving personal hearing or complying with the mandatory opportunity requirement.

Conclusion: The assessment order could not be sustained and was set aside.

Final Conclusion: The matter was sent back for fresh assessment after granting reasonable opportunity, including personal hearing, and the assessee was directed to produce its records before the authority.

Ratio Decidendi: Where the statute mandates reasonable opportunity including personal hearing before assessment, an ex parte assessment made without complying with that requirement is liable to be set aside and remitted for fresh consideration.

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