Pre-deposit waiver demands personal hearing and reasons before rejection where financial hardship is claimed.

An appellate authority considering waiver of pre-deposit must afford the assessee a personal hearing and record reasons before rejecting the request, especially where financial hardship is pleaded. The governing principle is that a quasi-judicial decision affecting access to the appeal cannot be made without observance of natural justice and a reasoned order. The impugned rejection was held unsustainable for want of hearing, and the matter was remitted to the appellate authority to give a personal opportunity and pass a reasoned decision.

---

---

Issues: Whether an appellate authority could reject an application for waiver of pre-deposit without affording the assessee a personal hearing and without recording reasons.

Analysis: The challenge centred on denial of a personal opportunity before disposal of the application seeking dispensation from pre-deposit on the ground of financial hardship. The governing principle applied was that an authority exercising quasi-judicial power must hear the applicant and record reasons for the conclusion reached before rejecting such an application, since rejection may effectively result in denial of the appeal itself.

Conclusion: The impugned order was held unsustainable for want of hearing. It was quashed and the matter was remitted to the appellate authority to afford a personal opportunity and pass a reasoned order.

---