Natural justice requires a personal hearing before rejection of a credit claim; absence of hearing led to remand for fresh adjudication.

Denial of a personal hearing before rejecting a credit claim was treated as a breach of natural justice. The record showed that the assessee complained of being heard only after the adverse order had been made, and that defect was sufficient to vitiate the decision. The impugned order was therefore set aside and the matter remanded for fresh adjudication in accordance with law, with due compliance of natural justice and an opportunity of hearing to the assessee.

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Issues: Whether the rejection of credit claim could stand when the assessee was not afforded a personal hearing before the adverse order and whether the matter required remand for fresh decision.

Analysis: The record showed that the assessee's grievance was denial of an opportunity of hearing before the adverse decision was taken. The absence of such hearing was treated as a breach of the requirements of natural justice. In consequence, the impugned order was set aside and the matter was sent back for fresh adjudication in accordance with law after complying with natural justice.

Conclusion: The denial of natural justice vitiated the order, and the matter was remanded for de novo decision after giving due hearing.

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