Effective opportunity of hearing required before ex parte rejection of trust registration application, with matter remanded for fresh adjudication.

An ex parte rejection of a trust's registration application cannot be sustained where notices were confined to the electronic portal and the record showed no effective opportunity to respond. The Tribunal found that the trust had not deliberately defaulted, had not sought adjournment, and was denied a meaningful hearing on the merits. The order was therefore set aside and the matter remanded to the Commissioner for fresh adjudication after granting a reasonable opportunity of being heard; the substantive question of registration remains open.

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Issues: Whether the ex parte rejection of the trust's application for registration was vitiated for want of a reasonable opportunity of hearing, warranting setting aside of the order and remand for fresh consideration.

Analysis: The assessee asserted that notices were issued only on the electronic portal and were not effectively accessed by the trust, and the record, including the affidavit of the trust's president and the e-proceedings, supported that no adjournment had been sought and that the trust had not deliberately defaulted. In these circumstances, the absence of a meaningful opportunity to respond rendered the disposal unsustainable. The proper course was to restore the matter to the Commissioner for fresh adjudication on merits after affording due hearing.

Conclusion: The ex parte order was set aside and the matter was remanded to the Commissioner for a fresh decision after granting a reasonable opportunity of being heard; the issue is answered in favour of the assessee.

Final Conclusion: The appeal succeeded only to the extent of restoration of the matter for fresh consideration, and the substantive question of registration remains open before the Commissioner.

Ratio Decidendi: An ex parte fiscal order passed without affording an effective opportunity to meet the queries and respond on merits cannot be sustained and must be restored for fresh adjudication after due hearing.

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