Effective hearing and changed legal basis led to quashing of assessment orders and remand for fresh consideration.

Assessment orders under the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 were set aside because the earlier deferral of adjudication was based on pending Supreme Court proceedings, and that basis no longer survived after dismissal of the civil appeals and review petition. The court also noted that the assessee had not been given an effective opportunity to present its case or file supporting materials. The matters were remanded to the assessing authority for fresh consideration in accordance with law after granting an opportunity of hearing, including personal hearing if sought.

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Issues: Whether the assessment orders under the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 were liable to be quashed and the matter remanded for fresh consideration after the dismissal of the Revenue's civil appeals and in the absence of effective opportunity of hearing.

Analysis: The impugned orders had been passed keeping the levy issue pending on account of the then pending challenge before the Supreme Court. Since the civil appeals and the review petition were subsequently dismissed, the basis for deferring consideration no longer survived. The orders also reflected that the assessee was not afforded a proper opportunity to present its case and file supporting materials. In such circumstances, the matter required reconsideration by the assessing authority after granting an opportunity of personal hearing, if sought.

Conclusion: The assessment orders were quashed and the matters were remanded to the respondent for fresh consideration in accordance with law after providing an opportunity of hearing to the assessee.

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