Broad construction of restoration powers under CEGAT procedure rules allows setting aside ex parte orders for sufficient cause.

Rule 20 of the CEGAT (Procedure) Rules, 1982 was construed broadly to permit restoration of an ex parte order where a party was prevented by sufficient cause from appearing. The tribunal's power was not confined to an appellant alone; the expression used in the rule was read to include a respondent as well, so that an ex parte order may be set aside to secure the ends of justice. On that basis, a restoration application filed by the assessee was maintainable and could not be rejected merely because the applicant was a respondent.

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Issues: Whether Rule 20 of the CEGAT (Procedure) Rules, 1982 extends to a respondent so as to permit restoration of an ex parte order passed in the respondent's absence.

Analysis: The rule was held to be not confined to the appellant alone. Reliance was placed on the Supreme Court's interpretation that the expression "appellant" in Rule 20 includes the respondent where sufficient cause prevented appearance, and that the tribunal has power to set aside an ex parte order to secure the ends of justice. On that basis, the restoration application was held maintainable.

Conclusion: The issue was answered in favour of the assessee. The application for restoration could not have been rejected on the ground that Rule 20 applied only to the appellant.

Ratio Decidendi: Rule 20 of the CEGAT (Procedure) Rules, 1982 is to be construed broadly so that a tribunal may set aside an ex parte order passed in the absence of a party who was prevented by sufficient cause from appearing, in order to secure the ends of justice.

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