Personal hearing requirement: demand order set aside because adjudication without a hearing breached principles of natural justice.

A demand order issued without affording the affected person an opportunity of personal hearing breaches the principles of natural justice. The notes state that the undisputed absence of a hearing before adjudication required fresh adjudication after providing a proper hearing opportunity. The demand order was therefore set aside on that basis.

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Issues: Whether the demand order could stand when no opportunity of personal hearing was afforded before its issuance.

Analysis: The undisputed absence of a personal hearing before adjudication constituted a breach of the principles of natural justice. Fresh adjudication was therefore required after affording the petitioner a proper opportunity of hearing.

Conclusion: The demand order was set aside for violation of the principles of natural justice, in favour of the assessee.

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