Personal hearing compliance is satisfied by final submissions; a later determination order does not require another hearing.

An opportunity of personal hearing before an adverse tax determination is satisfied where the proper officer considers the taxpayer's representation, grants hearings after receiving the response, and the authorised representative confirms that written submissions are final. A further hearing is not required merely because the determination order is issued later. The notes also state that refund of amounts recovered before expiry of the appeal period need not be directed where writ proceedings were not instituted within the statutory appeal period. The taxpayer may pursue the appellate remedy, with time spent in writ proceedings excluded for limitation, while issues other than the hearing question remain open.

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Issues: (i) Whether the personal-hearing requirement before an adverse tax determination was complied with; (ii) Whether refund of the amount recovered before expiry of the appeal period should be directed.

Issue (i): Whether the personal-hearing requirement before an adverse tax determination was complied with.

Analysis: The statutory scheme requires the proper officer to consider the taxpayer's representation before determining tax, interest and penalty, and requires an opportunity of hearing where an adverse decision is contemplated. Three hearing dates were granted after receipt of the response, and the authorised representative attended and confirmed that the written defence was the final submission. The record of those hearings was not controverted in the pleadings. A further hearing merely because the order was issued later is not mandated.

Conclusion: The opportunity of personal hearing was duly afforded and the requirement was complied with, against the assessee.

Issue (ii): Whether refund of the amount recovered before expiry of the appeal period should be directed.

Analysis: No refund direction was warranted because the taxpayer did not institute the writ proceedings within the three-month statutory period available for filing an appeal.

Conclusion: Refund of the recovered amount was declined, against the assessee.

Final Conclusion: The taxpayer may pursue the statutory appellate remedy within the stipulated period, with the period spent prosecuting the writ excluded for limitation purposes; all issues other than the hearing issue remain open before the appellate authority.

Ratio Decidendi: Where a taxpayer is afforded a hearing after the authority contemplates an adverse determination and the authorised representative makes final submissions, the requirement of an opportunity of hearing is satisfied and does not require a second hearing before issuance of the order.

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