Reasonable hearing before appellate disposal led to restoration of the matter for fresh adjudication on merits.

An ex parte first appellate order passed without disclosure of a reasonable opportunity of hearing was treated as unsustainable for want of proper adjudication. As the assessee had not been heard on merits and the order did not show how opportunity was granted, the matter was restored to the appellate authority for fresh disposal after giving a reasonable hearing. The substantive grievance relating to levy of interest was left open for examination in the restored proceedings.

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Issues: Whether the ex parte appellate order passed by the first appellate authority, without affording a reasonable opportunity of hearing, required restoration of the appeal for fresh adjudication.

Analysis: The appellate order did not disclose the dates or manner in which opportunity was granted to the assessee. In these circumstances, the order was treated as ex parte. As the assessee had not been heard on merits, and the Departmental Representative had no objection to restoration, the matter was considered fit for one more opportunity before the appellate authority. The substantive grievance relating to levy of interest was not finally adjudicated and was left to be examined in the restored proceedings.

Conclusion: The appeal was restored to the first appellate authority for fresh hearing on merits after granting reasonable opportunity to the assessee.

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