Natural justice and effective hearing requirements can vitiate adjudication where a party is denied a meaningful opportunity to respond.

Denial of a meaningful personal hearing at the crucial stage vitiates adjudication where the assessee is prevented, despite earlier adjournments and explained defaults, from effectively participating in the proceedings. On those facts, the disposal without properly accounting for the inability to attend the important hearings caused prejudice and breached natural justice. The order was therefore set aside and the matter remanded for de novo adjudication after granting an effective hearing.

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Issues: Whether the adjudication was vitiated by denial of natural justice for want of an effective personal hearing, warranting setting aside of the order and remand for de novo adjudication.

Analysis: The appellants had been given several dates of hearing, but the record showed that earlier adjournments had been acceded to and that the later defaults were explained by delayed receipt of notices and counsel's preoccupation before the Tribunal. On this material, the disposal of the matter without properly accounting for the inability to attend the crucial hearings was held to have caused prejudice and to have offended the requirement of fair hearing.

Conclusion: The order was set aside and the matter was remanded for de novo adjudication after granting an effective hearing.

Ratio Decidendi: Where the circumstances show that an assessee was deprived of a meaningful opportunity of hearing at the crucial stage, the adjudication is vitiated for breach of natural justice and must be set aside for fresh decision after effective hearing.

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