Rejection of petition challenging classification of "Autoclaved ...

AAC blocks wrongly classified under residuary entry instead of proposed entry. Show cause notice mandatory. Order deviating from notice without hearing assessee violates natural justice.

Case Laws     VAT and Sales Tax

July 16, 2024

Rejection of petition challenging classification of "Autoclaved Aerated Concrete blocks" (AAC Blocks) under residuary Entry 69 of Part C instead of proposed Entry 15 of Part C or claimed Entry 22 of Part B of First Schedule to TNVAT Act violated principles of natural justice. Show cause notice is mandatory, not an empty formality, to enable assessee's response. Order departing from show cause notice reasons without notice to assessee violates natural justice, hence unsustainable. Assessment orders classifying AAC Blocks under residuary entry different from show cause notice cannot be sustained.

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