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TMI Blog2012 (12) TMI 851X X X X Extracts X X X X X X X X Extracts X X X X ..... he writ petitions is that the assessing authority has passed the impugned revised assessment orders under Section 27(1)(a) of the Tamil Nadu Value Added Tax Act (for short, "the TNVAT Act") without giving an opportunity of hearing to the petitioner in terms of Section 40(2), when the revision notices encompassed both for revision as well as for imposition of penalty. It is the specific plea of the petitioner that Section 40(2) of the TNVAT Act mandates the authority to give an opportunity of hearing before imposing penalty. It is not in dispute that the petitioner had filed their objections to the notices proposing revision. However, the only plea now taken is that when the revision of assessment notices encompassed both for revision as wel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SCC 733, wherein the Supreme Court, while considering Rule 633(7) of the Uttar Pradesh Excise Manual which also provides for imposition of penalty and after referring to a plethora of decisions regarding the applicability of principles of natural justice, held that hearing is a must before imposition of penalty, whether or not statute or statutory provision/rules provide for it, as otherwise it would violate Article 14 of the Constitution of India. The Supreme Court has held as under: "28. The question with regard to the requirement of an opportunity of being heard in a particular case, even in the absence of provisions for such hearing, has been considered by this Court in a catena of cases. However, for the sake of brevity, we do not pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid doctrine. Therefore, we refrain from giving an exhaustive catalogue of the cases where the said principle should be applied. The question whether the principle has to be applied or not is to be considered bearing in mind the express language and the basic scheme of the provision conferring the power; the nature of the power conferred and the purpose for which the power is conferred and the final effect of the exercise of that power. It is only upon a consideration of all these matters that the question of application of the said principle can be properly determined. 30. Having considered the issue, framed in para 16, on the touchstone of the aforenoted legal principles in regard to the applicability of the principles of natural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r conferred on the competent authority under the provision is arbitrary. ..... 35. ....... We are convinced that in the present case, before imposing the impugned demand of penalty and interest, there was absolutely no adjudication by any authority as regards the breach committed by the appellant, except the allegation that the appellant had failed to furnish the PD 25 pass certified by the Collector. In our opinion, therefore, the action of the respondents for the recovery of penalty and interest, being violative of principles of natural justice, is null and void." (emphasis supplied) 6. In the light of the judgment of the Supreme Court and in view of the mandate of Section 40(2) of the TNVAT Act that an opportunity of hea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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