Procedural lapse under binding circular requires remand for fresh adjudication after consultation and hearing, not outright allowance.

A binding Board circular required consultation with the Development Commissioner for export oriented units, and the department's failure to comply created a procedural defect. Once that lapse was identified, the proper course was to remit the matter to the original authority so the defect could be cured and the respondents could be heard before a fresh decision. The lower appellate authority erred by allowing the appeal outright instead of ordering remand. The departmental appeal was therefore accepted, and the dispute was sent back for fresh adjudication in accordance with the prescribed procedure.

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Issues: Whether, after finding non-compliance with the Board's circular requiring consultation with the Development Commissioner in respect of an export oriented unit, the lower appellate authority ought to have remanded the matter to the original authority instead of allowing the appeal.

Analysis: The impugned order recorded that the Department had not followed the Board's circular dated 28-11-1995 and that the Development Commissioner had not been consulted. Once such a procedural defect was found, the proper course was to remit the matter to the original authority for curing the defect and for a fresh decision after giving the respondents adequate opportunity of hearing. The lower appellate authority, instead of remanding, allowed the appeal outright, which was held to be improper.

Conclusion: The matter was required to be remanded for fresh consideration after compliance with the circular and hearing the respondents.

Final Conclusion: The departmental appeal succeeded, and the dispute was sent back for fresh adjudication in accordance with the prescribed procedure.

Ratio Decidendi: Where a procedural lapse requiring consultation under a binding circular is found, the appropriate course is remand for curing the defect and fresh adjudication after affording hearing.

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