Pre-deposit waiver in cost recovery dispute leads to remand for fresh merits consideration and natural justice review

Pre-deposit of confirmed cost recovery charges was waived where the appellant, an EOU, showed a prima facie case and the factory had no permanently appointed officer at the premises. The Tribunal noted that the first appellate authority had dismissed the appeal only for non-compliance with the pre-deposit direction without deciding the dispute on merits. It therefore directed that the matter be heard afresh on merits and remanded it to the first appellate authority to reconsider the case in accordance with natural justice, without insisting on pre-deposit.

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Issues: Whether pre-deposit of the confirmed cost recovery charges should be waived and the matter remanded for fresh decision on merits.

Analysis: The appellant was an EOU and it was noted that no officer had been appointed permanently at its factory premises. The first appellate authority had dismissed the appeal for non-compliance with the pre-deposit direction without deciding the dispute on merits. In these circumstances, the Tribunal found a prima facie case for waiver of pre-deposit and considered that the appeal should be heard on merits. The Tribunal also directed that the first appellate authority reconsider the matter afresh after following the principles of natural justice.

Conclusion: Pre-deposit was waived and the matter was remanded to the first appellate authority for fresh consideration on merits without insisting on pre-deposit.

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