Natural justice in show-cause proceedings: conditional setting aside of orders and remand for fresh hearing.

Impugned orders passed without the petitioner filing a reply to the show-cause notice were directed to be set aside conditionally, as the petitioner disputed service of the notice and offered to furnish a nationalised bank guarantee. On furnishing the stipulated guarantee, the petitioner was permitted to submit a reply, raise all available objections including jurisdiction, and receive a hearing. The authority was then required to consider the reply and pass a speaking order on the notice. The matter was remitted for fresh consideration on these terms.

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Issues: Whether the impugned orders, passed without the petitioner filing a reply to the show-cause notice, should be set aside and the matter remitted for fresh consideration after giving an opportunity of hearing.

Analysis: The orders under challenge were passed without the petitioner having submitted a reply to the show-cause notice. The petitioner asserted non-service of the notice and expressed willingness to furnish a bank guarantee towards the penalty amount. In these circumstances, and to meet the ends of justice, conditional relief was considered appropriate: on furnishing a bank guarantee of a nationalised bank, the impugned orders would stand set aside, and the petitioner would be entitled to file a reply. The authority was then required to consider the reply, afford a hearing, and pass a speaking order on the show-cause notice. The petitioner was also permitted to raise all available contentions, including jurisdiction.

Conclusion: The impugned orders were set aside subject to furnishing of the stipulated bank guarantee, and the matter was remitted for fresh decision after hearing the petitioner.

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