Personal hearing in tax revision is mandatory when specifically sought; order set aside for breach of natural justice.

A revisional VAT order was unsustainable because the taxpayer entered appearance, filed a reply, and specifically sought a personal hearing, yet the authority decided the matter without granting that opportunity despite time remaining to do so. The court treated this omission as a denial of fair and reasonable opportunity before adverse tax consequences were imposed and held that it breached the principles of natural justice. The impugned order was set aside, with liberty to the authority to issue notice of personal hearing and pass a fresh order in accordance with law.

---

---

Issues: Whether the revisional VAT order was liable to be set aside for denial of personal hearing and breach of the principles of natural justice.

Analysis: The notices issued to the petitioner had returned unserved, and the record showed that the petitioner later entered appearance and filed a reply with a specific request for personal hearing. The authority nevertheless proceeded to decide the revision without affording that hearing, even though time remained for doing so before the stipulated date. In these circumstances, the absence of a personal hearing amounted to denial of a fair and reasonable opportunity before adverse tax consequences were imposed.

Conclusion: The impugned revisional order was unsustainable and was set aside for violation of natural justice, with liberty to the authority to issue notice of personal hearing and pass a fresh order in accordance with law.

Ratio Decidendi: Where a taxpayer appears in response to a show-cause notice and specifically seeks a personal hearing, a deciding authority must afford that opportunity before passing an adverse order; failure to do so vitiates the order for breach of natural justice.

---