Denial of personal hearing breached natural justice, leading to setting aside of the adjudication order and fresh remand.

An adjudication order affecting civil consequences could not be sustained because the assessee was denied the requested personal hearing. The record showed that a further opportunity of hearing was sought before the Commissioner passed the adverse order, but the request was not effectively granted. Breach of natural justice required the order to be set aside, and the matter was remitted for fresh adjudication so the assessee could be heard and all issues determined de novo.

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Issues: Whether the adjudication order was liable to be set aside for denial of a requested personal hearing and the matter remitted for fresh decision.

Analysis: The assessee had sought a further opportunity of hearing before the Commissioner passed the adverse order. The record showed that the request for hearing was not effectively granted and the order was made without affording the opportunity sought. A decision affecting civil consequences cannot be sustained where the party is denied a fair hearing, and the existence of possible merit in the Revenue's case cannot override the requirement of procedural fairness. The proper course was to set aside the order and remand the matter so that the assessee could be heard and all issues determined afresh.

Conclusion: The adjudication order was set aside for breach of natural justice and the matter was remitted for de novo adjudication after granting hearing to the assessee.

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