Personal hearing in refund proceedings is essential where opted for; rejection set aside for breach of natural justice.

A refund rejection was found to be vitiated where the applicant had opted for personal hearing in the prescribed form, yet the record showed no indication that such hearing was granted. The Madras High Court treated this omission as a breach of natural justice and set aside the impugned order. The matter was remitted for fresh consideration after affording the petitioner a personal hearing.

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Issues: Whether the rejection of the refund application was vitiated for denial of personal hearing and whether the matter required reconsideration after granting such hearing.

Analysis: The refund application was in a prescribed form that expressly provided for personal hearing, and the applicant had opted for it. The impugned order contained no indication that such opportunity was granted. In the absence of any material showing that the petitioner was heard, the rejection of refund was held to suffer from a breach of natural justice.

Conclusion: The impugned refund rejection was set aside and the matter was remitted to the first respondent for fresh consideration after affording personal hearing to the petitioner.

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