Limitation and natural justice in rebate proceedings: appeal not time-barred, and ex parte adjudication was remanded for fresh hearing.

An appeal was held not to be time-barred where the record showed that the adjudication order was actually received only on 10 August 2013 and the appeal was filed immediately thereafter, making rejection on limitation unsustainable. The adjudication was also found vitiated by breach of natural justice because the appellant was denied a meaningful further hearing before an ex parte order was passed and the order was not served in the prescribed manner. The order was set aside and the rebate dispute remitted to the original authority for fresh decision on merits after due hearing.

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Issues: (i) Whether the appeal filed before the first appellate authority was barred by limitation in view of the alleged service of the adjudication order; (ii) whether the adjudication was vitiated for want of a proper opportunity of hearing and whether the matter should be remanded for fresh decision.

Issue (i): Whether the appeal filed before the first appellate authority was barred by limitation in view of the alleged service of the adjudication order.

Analysis: The record showed that the adjudication order had been sent by speed post, but postal certification and surrounding communications established that the appellant actually received the order only on 10 August 2013. The appeal was filed immediately thereafter. In these circumstances, the premise that the appeal was delayed was not sustainable.

Conclusion: The appeal was not barred by limitation and the rejection on that ground was improper.

Issue (ii): Whether the adjudication was vitiated for want of a proper opportunity of hearing and whether the matter should be remanded for fresh decision.

Analysis: The appellant had sought a fresh hearing date after appearing on the scheduled date, but no effective further hearing was granted before the original authority decided the matter ex parte. The procedure followed did not provide a meaningful opportunity to meet the proposed rejection of the rebate claim, and the order was also not served in the legally prescribed manner. The defect went to the fairness of the adjudication itself, so a mere remand to the first appellate authority would not cure it.

Conclusion: The adjudication was vitiated for breach of natural justice, and the matter was required to be remitted to the original authority for fresh decision after giving the appellant a proper hearing.

Final Conclusion: The impugned order was set aside and the rebate dispute was sent back for fresh adjudication on merits after due hearing.

Ratio Decidendi: Where an adjudication order is not duly served and the assessee is denied a meaningful opportunity of hearing, rejection of the appeal on limitation is unsustainable and the matter must be remanded for fresh decision in accordance with natural justice.

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