Natural justice in tax adjudication: absence of a specified personal hearing led to interim protection against coercive recovery.

A show cause notice that mentions personal hearing without specifying the date, time or venue may fall short of the hearing requirement under section 75(4), which was treated as reflecting natural justice. The court noted apparent non-compliance with that requirement and sought a counter affidavit on the issue. No final ruling was given on the validity of the tax, interest and penalty order, but interim protection was granted and coercive recovery under the demand was restrained until the next date.

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Issues: Whether the impugned tax, interest and penalty order was vulnerable for want of opportunity of hearing under section 75(4) and whether interim protection against coercive recovery was warranted.

Analysis: The show cause notice referred to personal hearing, but no date, time or venue was specified. Section 75(4) contemplates a hearing where a request is made or where an adverse decision is contemplated, and the provision was treated as embodying the principles of natural justice. On the face of the record, non-compliance with the hearing requirement was noticed, and the matter was directed to be answered by counter affidavit.

Outcome: No final adjudication was made on the validity of the impugned order. Interim protection was granted and coercive action pursuant to the demand was restrained till the next date.

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