Principles of natural justice require adequate hearing before appellate disposal; Tribunal order set aside and matter remanded.

The Tribunal's dismissal of the assessee's appeal on merits was found unsustainable because the assessee was not given sufficient opportunity of hearing. As the final fact-finding authority, the Tribunal was expected to afford adequate opportunity to present the case, and deciding the appeal in the absence of the assessee's representative caused prejudice and a procedural infirmity. The HC held that this violated the principles of natural justice, set aside the Tribunal's order, and remitted the matter for fresh consideration after hearing both sides.

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Issues: Whether the Tribunal was justified in dismissing the assessee's appeal on merits without granting sufficient opportunity of hearing, and whether such disposal was vitiated for breach of natural justice, warranting setting aside and remand.

Analysis: The appeal before the Tribunal had been decided on merits after noting absence of the assessee's representative on the hearing date and on previous occasions. The dispute involved factual questions, and the Tribunal, as the final fact-finding authority, was expected to afford adequate opportunity to the assessee to present the case. Deciding the appeal without such opportunity would prejudice the assessee's interests and amount to a procedural infirmity.

Conclusion: The Tribunal's order was held unsustainable for violation of principles of natural justice. The appeal was allowed, the Tribunal's order was set aside, and the matter was remitted for fresh consideration after giving both sides an opportunity of hearing.

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