Personal hearing requirement invalidated adverse tax order on high sea sales turnover where fairness was denied.

Disallowance of exemption on high sea sales turnover could not be sustained where the adverse order was passed without notice and without granting a requested personal hearing, despite the relevant documents having been placed before the authority. The Court applied the fairness principle that a specific request for personal hearing forms part of reasonable opportunity before an adverse determination. As the Department's interest was already protected by bank attachment, the procedural lapse justified interference. The impugned order was set aside only to the extent it related to the high sea sales turnover, and the matter was remitted for a fresh decision after affording personal hearing and proceeding in accordance with law.

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Issues: Whether the assessment order levying tax on the high sea sales turnover could be sustained when no personal hearing was afforded before the adverse determination.

Analysis: The dispute related only to the disallowance of exemption on high sea sales turnover. The petitioner complained that the impugned order was passed without notice and without granting a personal hearing, although the petitioner had placed the relevant documents before the authority. The Court applied the principle that where a specific request for personal hearing is made, reasonable opportunity before an adverse order must include such hearing in the interest of fairness. Since the Department's interest was protected by the bank attachment already made, the procedural lapse was treated as sufficient to warrant interference.

Conclusion: The impugned order was set aside only insofar as it related to the disallowance of exemption on the high sea sales turnover, and the matter was remitted to the authority to afford a personal hearing and proceed in accordance with law.

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