Ex parte tax disposal set aside where settlement claim required a fair hearing on merits under the scheme.

An ex parte disposal of a pending sales tax appeal was set aside because the settlement scheme had already come into force before communication of that order, and the record did not fully discredit the assessee's claim of having appeared on the hearing date. The Tribunal applied considerations of fairness and substantial justice, holding that the Form No. 1 application under the settlement mechanism should not be defeated by the ex parte order. The matter was therefore directed to be admitted and decided on merits in accordance with law, preserving the assessee's opportunity to seek settlement of the tax dispute.

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Issues: Whether the ex parte disposal of the pending sales tax appeal should be set aside and the application in Form No. 1 under the Settlement Act should be admitted and decided on merits.

Analysis: The Tribunal noted that the settlement scheme had come into force before the impugned ex parte disposal had been communicated to the petitioner, and the materials placed before it did not fully discredit the petitioner's assertion of presence on the hearing date. In these circumstances, and to advance substantial justice, the Tribunal held that the application in Form No. 1 ought to be considered on merits rather than being defeated by the ex parte order. The approach was consistent with fairness and the requirement of hearing the dispute under the settlement mechanism.

Conclusion: The ex parte order was set aside and the application in Form No. 1 was directed to be admitted and disposed of on merits in accordance with law, in favour of the assessee.

Final Conclusion: The proceeding was allowed by restoring the assessee's opportunity to pursue settlement of the tax dispute on merits.

Ratio Decidendi: Where an ex parte order frustrates a pending statutory settlement claim and the interests of substantial justice require, the matter should be reopened and decided on merits after giving an effective opportunity of hearing.

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