Pending settlement application cannot justify dismissal when rejection leaves no remedy; matter must be remanded for fresh merits-based decision.

An appeal should not be dismissed solely because a settlement application was pending when the application has since been rejected, leaving the appellant without a remedy before the Settlement Commission or the Commissioner (Appeals). Where the appellate authority has not decided the matter on merits, the dismissal cannot be sustained. The proper course is to set aside that order and remand the matter for a fresh decision in light of the subsequent development.

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Issues: Whether the Commissioner (Appeals) was justified in dismissing the appeal solely on the ground that the matter was pending before the Settlement Commission, and whether the matter required remand after rejection of the settlement application.

Analysis: The settlement application had been rejected and, therefore, the appellant had been left without any remedy before the Settlement Commission as well as before the Commissioner (Appeals). Since the appeal had not been decided on merits, the order of the Commissioner (Appeals) could not be sustained. The appropriate course was to set aside that order and direct a fresh decision in the light of the subsequent development.

Conclusion: The appeal was allowed by way of remand and the matter was sent back for fresh decision.

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