Ex parte appellate order set aside and matter restored for fresh hearing on merits, with costs imposed for prior non-compliance.

An ex parte appellate order may be set aside where the assessee seeks one further opportunity to be heard and restoration is considered necessary to secure substantial justice. The Tribunal noted the assessee's earlier non-appearance but accepted that the issues should be examined on merits by the first appellate authority. The matter was restored for fresh disposal, with the opportunity conditioned on payment of costs to address the prior default.

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Issues: Whether the ex parte appellate order should be set aside and the matters restored to the first appellate authority for fresh disposal after granting the assessee an opportunity of hearing.

Analysis: The assessee had not appeared before the first appellate authority on the dates fixed for hearing, resulting in disposal of the appeals ex parte. The Tribunal noted the assessee's undertaking to cooperate and appear before the Commissioner (Appeals) if another opportunity was granted. Balancing the assessee's lapse against the need to render substantial justice, the Tribunal considered that the appellate issues should be examined on merits after giving a further opportunity. To account for the repeated defaults, costs were imposed as a condition for such opportunity.

Conclusion: The ex parte appellate orders were set aside and the matters were restored to the Commissioner (Appeals) for fresh disposal after giving the assessee an opportunity of hearing.

Final Conclusion: The appeals were not decided on merits and were sent back for reconsideration, with the assessee's entitlement to a fresh hearing preserved on payment of costs.

Ratio Decidendi: Where an appellate order is passed ex parte and the assessee seeks one further opportunity to participate, the interests of substantial justice may justify restoration of the matter for fresh adjudication, even if costs are imposed for the earlier non-compliance.

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