Natural justice breach in refund appeal led to setting aside of appellate order and remand for fresh hearing.

Failure to grant a personal hearing before the first appellate authority was treated as a breach of natural justice, because the appeal was decided without giving the appellant a fair opportunity to be heard. That procedural defect was sufficient to invalidate the appellate order, and the refund claim on merits was not examined. The matter was therefore sent back for fresh adjudication after due notice and an opportunity of hearing, ensuring compliance with the principles of natural justice.

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Issues: Whether the appellate order rejecting the refund claim was liable to be set aside for breach of natural justice owing to non-grant of personal hearing, and whether the matter should be remanded for fresh adjudication.

Analysis: The appellant was not heard before the first appellate authority. The absence of a personal hearing, notwithstanding the reason for non-appearance, meant that the appeal had been decided without following the principles of natural justice. That procedural infirmity was sufficient to invalidate the impugned appellate order, and the merits of the refund claim under the notification were therefore not examined.

Conclusion: The impugned order was set aside and the appeal was remanded to the first appellate authority for fresh decision after due notice and opportunity of hearing to the appellant.

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