Reasoned hearing required before interim stay orders affect appeal rights; consequential dismissal for non-compliance set aside and remanded.

An interim stay order affecting an assessee's right to pursue an appeal cannot stand if passed without hearing the affected party and without recorded reasons. Because the stay application was disposed of in that defective manner, the later dismissal for non-compliance was only consequential and also unsustainable. The stay order and the consequential dismissal were therefore set aside, and the matter was remanded to the Commissioner (Appeals) for fresh disposal after hearing the appellant.

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Issues: Whether the interim stay order passed without affording an opportunity of hearing and without reasons, and the consequential dismissal for non-compliance, were liable to be set aside and the matter remanded for fresh consideration.

Analysis: The application for interim relief was disposed of along with other applications without hearing the appellant and without recording reasons. Such disposal was found to be erroneous and contrary to the requirement of a reasoned decision after hearing the affected party. The later dismissal of the appeal for non-compliance with that interim order was consequential to the defective order on stay.

Conclusion: The stay order and the consequential dismissal were set aside and the matter was remanded to the Commissioner (Appeals) for fresh disposal after hearing the appellant.

Final Conclusion: The appeal succeeded only to the extent of remand, with the impugned interim and consequential orders annulled.

Ratio Decidendi: An order affecting an assessee's right to prosecute an appeal must be passed after affording a hearing and by a reasoned order; a consequential dismissal founded on such defective order cannot stand.

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