Rectification for manifest error and fair hearing: Tribunal order set aside where pleaded facts were ignored on record.

A rectification order can be interfered with where it rests on a manifestly incorrect assumption contrary to the record and fails to respect fair hearing requirements. The Gujarat HC noted that the appellant had pleaded the relevant credit and limitation sequence in the memorandum of appeal, so the Tribunal's contrary statement was unsupported by its own record. Where an appeal is decided ex parte, the record must be examined carefully and adverse findings should not be based merely on non-appearance when an adjournment was sought. The rectification rejection was therefore unsustainable, and the matter was remitted for fresh hearing on merits.

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Issues: Whether the Tribunal's order rejecting the rectification application was vitiated by error apparent on the record and breach of natural justice, and whether the original appellate order was liable to be quashed and the appeal restored for fresh hearing.

Analysis: The record showed that the appellant had pleaded in the memorandum of appeal that the credit had initially been taken and later reclassified at the instance of the department, and that the limitation point arose from that sequence. The Tribunal's statement that the plea was not raised was contrary to its own record. When an appeal is decided ex parte, the responsibility to examine the entire record is greater, and adverse findings cannot be based on non-appearance where an adjournment had been sought. The rejection of the rectification application therefore ignored the record and failed to give due effect to the requirement of fair hearing.

Conclusion: The rectification rejection was unsustainable, the original appellate order was quashed, and the appeal was restored to the Tribunal for fresh decision after hearing the parties.

Final Conclusion: The petition succeeded, the impugned Tribunal orders were set aside, and the matter was remitted for reconsideration on merits with proper opportunity of hearing.

Ratio Decidendi: A rectification order is liable to be interfered with where it proceeds on a manifestly incorrect assumption contrary to the record, particularly when an ex parte decision has ignored pleaded contentions and the requirement of fair hearing.

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