Court sets aside assessment order under Tamil Nadu VAT Act 2006 for lack of proper procedure

The court set aside the assessment order under the Tamil Nadu Value Added Tax Act, 2006 for the period 2014-15 due to lack of proper procedure for a personal hearing. The petitioner was directed to appear before the Authority for a scheduled personal hearing, with a warning that failure to attend would result in the order being reinstated. The Officer was instructed to issue a new order within four weeks of the hearing. The writ petition was disposed of without costs, concluding the legal proceedings.

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Issues:
Challenge to assessment order under Tamil Nadu Value Added Tax Act, 2006 for the period 2014-15; Lack of effective opportunity for petitioner to make submissions prior to completion of assessment; Validity of pre-assessment notice granting opportunity of personal hearing; Requirement of proper procedure for personal hearing; Setting aside impugned order subject to petitioner appearing before the authority.

Analysis:
The judgment concerns a challenge to an assessment order under the Tamil Nadu Value Added Tax Act, 2006 for the period 2014-15. The petitioner had approached the Appellate Authority regarding an issue related to the turnover from the sale of a windmill. The petitioner contended that no effective opportunity was provided to make submissions before the assessment was finalized, emphasizing the lack of a personal hearing. The Government Advocate argued that a pre-assessment notice dated 30.07.2019 had granted an opportunity for a personal hearing, which the petitioner did not avail.

The court observed that the opportunity granted under the said notice did not adhere to proper procedure as it did not specify a date and time for the personal hearing. It was highlighted that a personal hearing should follow the receipt of objections to ensure both parties are fully informed of their positions for an effective hearing. Consequently, the court directed the petitioner to appear before the Authority on a specified date without awaiting further notice, emphasizing the importance of a proper personal hearing process.

The judgment set aside the impugned order, subject to the condition that the petitioner attends the scheduled personal hearing. It was made clear that if the petitioner fails to avail this opportunity, the benefit of setting aside the order would be forfeited, and the impugned order would stand reinstated. The court instructed the Officer to pass an order within four weeks from the date of the personal hearing, thereby ensuring timely resolution of the matter. The writ petition was disposed of with no costs, and the connected miscellaneous petition was closed, concluding the legal proceedings in this case.

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