Natural justice in faceless appeals requires a hearing before disposal; appellate orders were set aside and matters restored.

Denial of an opportunity of hearing in the faceless appellate regime was held to violate the principles of natural justice. The appellate scheme, even if silent on an express hearing requirement at the time, had to be read consistently with fair procedure so that the assessee could present its case before the appeal was decided. The subsequent amendment making a hearing mandatory when requested reinforced that interpretation. The appellate orders were set aside and the appeals were restored for fresh disposal after granting a hearing to the assessee.

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Issues: Whether the appellate orders passed under the faceless appeal regime were liable to be quashed for denial of an opportunity of hearing.

Analysis: The denial of a hearing at the appellate stage was held to offend the principles of natural justice. Even if the scheme, as it then stood, did not expressly require a hearing, natural justice had to be read into it so that the assessee could present its case before the appeal was decided. The later amendment making a hearing mandatory when sought also reinforced that conclusion.

Conclusion: The appellate orders were set aside and the appeals were restored for fresh disposal after affording an opportunity of hearing to the assessee.

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