Natural justice in mismatch turnover assessments leads to remand for fresh consideration with a partial pre-deposit condition.

Assessment orders in mismatch turnover proceedings under the Tamil Nadu VAT regime were remanded for fresh consideration because the record indicated a possible violation of natural justice, including absence of a proper reply before the impugned orders were passed. The HC also noted that the petitioner had not pursued the statutory appeal remedy and that the dispute had already seen earlier rounds of assessment and remand. On that basis, the matter was sent back for fresh assessment on merits, subject to a partial pre-deposit condition and filing of a proper reply treating the impugned orders as an addendum.

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Issues: Whether the impugned assessment orders warranted remand for fresh consideration on the ground of violation of natural justice, and whether such remand should be subject to payment of 25% of the disputed tax.

Analysis: The assessment arose from mismatch turnover proceedings under the Tamil Nadu Value Added Tax regime and the petitioner had challenged the impugned orders after notices were issued on the basis of the departmental circular governing mismatch cases. The Court noted that there were circumstances indicating that the impugned orders were passed without a proper reply and that an element of violation of principles of natural justice was present. At the same time, the Court took note of the fact that the petitioner had not pursued the statutory appeal remedy and that the matter had already undergone earlier rounds of assessment and remand. In these circumstances, the Court found it appropriate to send the matter back for fresh consideration while imposing a partial pre-deposit condition.

Conclusion: The matter was remanded to the respondent for fresh assessment on merits, subject to payment of 25% of the disputed tax within 45 days and filing of a proper reply treating the impugned orders as an addendum.

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