Meaningful hearing requirement vitiates compounding fee order where the assessee's reply was not considered, requiring remand.

An order fixing compounding fee under the Tamil Nadu Value Added Tax Act was held unsustainable where the assessee's reply to the second notice was received but not meaningfully considered, and the record did not show an effective opportunity of hearing. The court found that an adjudicatory order imposing fiscal liability must reflect application of mind to the reply and supporting materials; failure to do so vitiates the order. The impugned order was set aside and the matter was remitted for fresh consideration after personal hearing.

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Issues: Whether the order fixing compounding fee under Section 72 of the Tamil Nadu Value Added Tax Act was vitiated for non-consideration of the petitioner's reply and for denial of an effective opportunity of hearing.

Analysis: The proceedings arose after the earlier direction to proceed in accordance with law on the composition fee. The petitioner had submitted a reply to the second adjudication notice, and the record showed that the reply was received by the Revenue. The impugned order, however, did not show any meaningful consideration of the reply or its contents. In the absence of proper consideration of the representation and in the context of the challenge that the order had not been served, the adjudication could not be sustained in legal scrutiny.

Conclusion: The order was held unsustainable and was set aside. The matter was remitted to the respondents for fresh consideration after affording the petitioner a personal hearing and an opportunity to place supporting materials.

Ratio Decidendi: An adjudicatory order imposing fiscal liability must reflect due consideration of the assessee's reply and a meaningful opportunity of hearing; failure to do so vitiates the order and warrants remand.

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