Effective opportunity of hearing requires a fresh tribunal hearing when absence is explained and merits were not heard.

An order directing deposit of the full service tax demand was set aside because the appellant had shown a lack of effective opportunity of hearing before the Tribunal. The record reflected non-appearance on the hearing date and an explanation that counsel was unwell, which the Court treated as sufficient to grant one further opportunity. The matter was restored for fresh consideration on merits with advance notice to counsel, since a party should not be prejudiced by an order passed in absence where the denial of hearing is adequately shown on record.

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Issues: Whether the Tribunal's order directing deposit of the entire service tax demand was liable to be set aside for want of effective opportunity of hearing, and whether the matter should be restored to the Tribunal for fresh consideration.

Analysis: The appellant had informed the Tribunal that counsel was unwell on the date fixed for hearing the stay and waiver application. The record showed non-appearance on that date, and the Court treated this as sufficient to grant one further opportunity. In these circumstances, interference was warranted to secure a hearing on merits.

Conclusion: The Tribunal's order was set aside and the miscellaneous application was directed to be heard afresh on merits after advance notice to counsel.

Final Conclusion: The appeal succeeded and the matter was restored to the Tribunal for fresh disposal in accordance with law.

Ratio Decidendi: Where a party is denied an effective opportunity of hearing for reasons shown on record, an order passed in its absence may be set aside and the matter restored for adjudication on merits.

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