Fair hearing in tax appeals requires consideration of material filed on appeal before dismissing a successor purchaser's challenge.

An appellate authority must consider documents filed with the memorandum of appeal where the appellant, as a successor purchaser, was not heard at the original stage and the cancellation order was passed ex parte. The material placed before the appellate forum constituted the appellant's first opportunity to present its case, so ignoring it amounted to denial of fair hearing and miscarriage of justice. On that basis, the Tribunal's dismissal of the appeal could not be sustained and the matter was remanded for fresh decision in accordance with law, with stay on recovery continuing until disposal of the appeal.

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Issues: Whether the appellate authority was justified in dismissing the appeal without considering the documents filed with the memorandum of appeal and without giving the purchaser firm an opportunity of hearing, and whether the matter required remand for fresh decision.

Analysis: The cancellation order under section 4A(3) had been passed ex parte and no notice had been given to the purchaser firm, though it claimed to be the aggrieved successor in interest and had preferred the appeal under section 10(2) of the U.P. Trade Tax Act, 1948. Since the purchaser had not been heard at the original stage, the documents produced with the appeal constituted the first opportunity to place its material before the appellate forum. The Tribunal was bound to examine those documents before affirming dismissal of the appeal. Its failure to advert to the material on record amounted to denial of fair hearing and resulted in miscarriage of justice.

Conclusion: The dismissal of the appeal by the Tribunal could not be sustained and the matter was remanded for fresh decision in accordance with law. The petitioner was also protected by continuation of the stay on recovery till disposal of the appeal.

Ratio Decidendi: Where an order affecting a successor purchaser is passed without notice and the appellate record contains material not examined by the Tribunal, failure to consider that material and afford a fair opportunity vitiates the appellate decision and warrants remand.

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