Reasonable hearing in VAT assessment is mandatory; rejection of time to produce documents vitiated the assessment for breach of natural justice.

Section 31 of the Tripura Value Added Tax Act, 2004 requires a real and reasonable opportunity of hearing before an assessment order is made. The assessing authority, acting in a quasi-judicial capacity, must comply with natural justice and audi alteram partem; a hearing cannot be merely formal. Where the assessee sought time to produce original supporting documents and the request was rejected without proper consideration, the assessment could not rest on suspicion or surmise. The assessment orders and demand notices were therefore unsustainable for breach of natural justice.

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Issues: Whether the assessment orders and demand notices were liable to be set aside for denial of reasonable opportunity of hearing under Section 31 of the Tripura Value Added Tax Act, 2004.

Analysis: Section 31 requires a reasonable opportunity of hearing before an assessment order is made. The assessing authority performs quasi-judicial functions and is bound by the principles of natural justice, including audi alteram partem. A hearing must be real and effective, not an empty formality. Where the assessee seeks time to furnish original supporting documents and the request is rejected without proper consideration, the resulting assessment cannot rest on suspicion or surmise and is vulnerable for breach of natural justice.

Conclusion: The assessee was denied a reasonable opportunity of hearing, and the assessment orders and demand notices could not be sustained.

Ratio Decidendi: An assessment made under Section 31 without granting a real and reasonable opportunity to produce material in support of the return is vitiated for breach of natural justice.

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