Natural justice requires a hearing before rejecting statutory penalty waiver relief; denial of hearing vitiated the order.

An order declining waiver or reduction of penalty under section 18(2A) of the Wealth-tax Act was held unsustainable because the affected person was not given an opportunity of hearing. The court treated the request as a statutory remedy affecting civil rights and applied the rule of natural justice to both executive and quasi-judicial decision-making. As no hearing preceded the rejection of relief, the orders were quashed and the matter was remitted for rehearing in accordance with law.

---

---

Issues: Whether the order declining waiver or reduction of penalty under section 18(2A) of the Wealth-tax Act, 1957 was vitiated for want of an opportunity of hearing and therefore liable to be quashed.

Analysis: The relief sought before the Commissioner was a statutory remedy affecting civil rights. An order passed in such a matter, whether by an executive or quasi-judicial authority, could not be sustained without affording the affected person an opportunity to be heard. Since no hearing was given before rejecting the request for waiver or reduction of penalty, the requirement of natural justice was not satisfied.

Conclusion: The impugned orders were unsustainable and were quashed, and the matter was remitted to the Commissioner for rehearing in accordance with law.

---