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2021 (10) TMI 845 - HC - VAT and Sales TaxPrinciples of natural justice - Assessment of escaped turnover - wrong availment of Input Tax Credit - reasonable opportunity to show cause given or not - Section 27 of TNVAT Act - HELD THAT:- Interestingly and intriguingly, the provision under which the impugned order has been made i.e., Section 27 of TNVAT Act talks about 'Best of its Judgment' for making re-assessment. This is all the more good ground to say that reasons even should be given and in the light of proviso to sub-sections(1) and (2) of Section 27 of TNVAT Act, it is imperative that the cause shown by writ petitioner is considered for re- assessment/revision by adopting Best Judgment Methodology. It follows as a sequitur that the reasons would therefore form the soul of a revision/re-assessment order and how the objections were considered should be set out and such articulations can be terse or short but it neither be laconic nor bereft of reason (as in this case) - in the instant case, there is nothing in the impugned order to show that the objections were considered. The impugned order being is set aside solely on the ground that the cause shown by writ petitioner has not been considered and it does not give any reason whatsoever for not accepting the dealer's position. To be noted, the impugned order also imposes penalty under Section 27(4) of TNVAT Act - Petition allowed.
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