Pre-deposit dismissal set aside where the appellant had paid tax and interest but was denied an effective hearing.

An appellate order dismissing an appeal for non-compliance with pre-deposit could not be sustained where the appellant had already paid the service tax and interest and was not given an effective opportunity of hearing. The matter was required to be reconsidered on merits without insisting on pre-deposit, and with a reasonable opportunity of hearing. The impugned order was set aside and the case remanded for fresh decision.

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Issues: Whether the dismissal of the appeal for non-compliance with the pre-deposit requirement, without affording effective hearing, warranted interference and remand.

Analysis: The appeal had been dismissed for non-compliance with the pre-deposit requirement. The appellant had already paid the service tax and interest, and the order had been passed without granting an effective opportunity of hearing. In these circumstances, the appellate order could not be sustained. The matter was therefore required to be reconsidered on merits without insisting on pre-deposit, and with a reasonable opportunity of hearing.

Conclusion: The impugned order was set aside and the matter was remanded for fresh decision without insisting on pre-deposit, with opportunity of hearing to the appellant.

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